Author: Martijn Konings
The Federal Reserve’s bid to “get wages down” reflects the enduring hold of neoliberal thought at the highest levels of economic policymaking.
This piece spotlights the absurdity of plans to rein in inflation by bringing down wages even as it is widely acknowledged that wage increases do not drive inflation. It explains this situation by examining the enduring hold that neoliberal ideas have on the imagination of policymakers and the central role that asset inflation and capital gains play in that mindset.
Martijn Konings, “The Asset Economy Strikes Again,” Boston Review, August 24, 2022, https://bostonreview.net/articles/the-asset-economy-strikes-again/.