The NFL just raised its salary cap to $301 million. Should the Federal Reserve raise rates in response, to slow the pace of wage inflation in the NFL, other sports leagues, and the overall economy?
Every time I get a pay increase, the Federal Reserve screams 'Inflation!' from the mountain tops, and raises rates to slow economic grow and wage growth.
Why is my wage growth more monetarily abhorrent than the wage growth of professional athletes? Paying athletes more money increases the price of tickets, TV contracts, merhcandise, stadium concessions, parking, etc., that ripple throughout the economy more rapidly than my measely paycheck wage increases.
Why is some personal income growth acceptable under monetary theory while other personal income growth is unacceptable? Doesn't rising executive compensation lead to higher prices and diluted share values for common shareholders?
I don't know. It's seems the Fed likes to put the screws to working Americans while giving a pass to rich Americans. The Fed's policies have been a significant contributor to the increasing wealth gap in America.