2% inflation and wage growth

Inflation in the 1950s was give or take around 2%. In actuality it was all over the road. I am possibly talking an average for the decade per year. Wage growth was a very powerful force in the 50s and 60s. By 65 the middle class was borrowing massively while government borrowing was ratcheting upwards. The rise in labor costs was not extremely inflationary because productivity gains offset labor increases in pay. The rise in borrowing was most of the inflationary pressures. Later rising labor rates were used as the sole reason for inflation. That was always a lie.

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