Theya Culpa

Mark Perry at Carpe Diem has an excellent post pointing out that The FDC's much revered Wall Street Journal erred today in an editorial written by David Ranson that was much ballyhooed by the MSM that said inflation is sky-rocketing.

Perry:

"David Ranson is way off-base on his inflation analysis and has made a serious and fundamental error: he has assumed that income remains constant for 30 years and all other prices increase annually by 4%. That's pure nonsense and nitwitery.Reason? Wages are just another price, the price of labor. And inflation affects all prices, including wages....Inflation may or may not be a problem, but to assume that prices go up but wages don't IS a real problem for this WSJ editorial."

The FDC agrees with Perry. Theya culpa.