Inflation definition – Economist Mar 8 p. 41

Date:       14 Mar 14

By:            Frank Gue, B.Sc., MBA, P.Eng.,
                 2252 Joyce St. 
                 Burlington, ON Canada L7R 2B5
                 905 634 9538
For:          Editors, The Economist,  London, UK
Re:           ” … bring down inflation … ” Mar 8, p. 41
 
Dear Editors:
 
Back to Economics 101, boys and girls.
 
You say, “[A 30% raise to their employees] would help to keep [inflation] from skyrocketing.”
 
More pay for no more production is, by definition, inflation.
 
A corrected reading of that hypothesis might be:
 
A 30% raise to one certain group, teachers, would help keep inflation from
skyrocketing for teachers but would increase it for another group, ie everyone else.
 
You are to write on the board 25 times, “More pay for no more production = inflation.”
 
Cheers,
 
F.
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