This chart, courtesy of John Butcher, shows how the Consumer Price Index has broken out from the annual 1% to 3% increase range of the previous decade. While inflation is a national story, it has public policy implications for Virginia, especially now that public employee unions can engage in collective bargaining. Federal Reserve Bank officials hope the inflationary surge will subside. But once inflationary expectations get embedded in the economy — most visibly through the mechanism of multi-year union contracts — they can be stubbornly persistent. You can’t blame workers for wanting their pay to keep pace with inflation. But someone will draw the short stick, and that’s likely to be taxpayers. — JAB
About
Bacon's Rebellion is Virginia's leading politically non-aligned portal for news, opinions and analysis about state, regional and local public policy. Read more about us here.Fund the Rebellion
Shake up the status quo!
Your contributions will be used to pay for faster download speeds and grow readership. Make a one-time donation by credit card or contribute a small sum monthly.
Can't wait until tomorrow for your Bacon's Rebellion fix?
Search Bacon’s Rebellion
Content Categories
Archives
The Jefferson Council: Protecting Thomas Jefferson’s Legacy at the University of Virginia
Forgot Your Password?
Shoot me an email and I'll generate a new password for you.-
Recent Posts
- Riley Gaines: Role Model
- Off the Interstate: “God’s Thumbprint”
- No, Virginia Beach Did NOT Cut Taxes
- Greasing the Skids for the Budget
- Fewer Children Seeking ER Treatment for Cannabis Ingestion
- Virginia Beach Budget Will Lower Your Standard of Living
- Frosted Fame in Chesterfield
- UVA Grad Students Urge Withholding of Year-End Grades
- Youngkin Kills Tax Hikes, Still Gets Record Budget
- Mother’s Day in Virginia
- Jeanine’s Memes
- Bacon Meme of the Week
- The Crying Game
- So Much for Empathetic Listening
- No Need to Call the Budget Bluff