@Noahpinion 1/ FDR facing serious inflation in WWII.
Proposed tax increases to drain demand.
Conservative congress critters HATED that idea. (Taxes BAD.)
So he proposed wage/price controls.
Proposed tax increases to drain demand.
Conservative congress critters HATED that idea. (Taxes BAD.)
So he proposed wage/price controls.
@Noahpinion 2/ Conservatives luvved them some wage controls. Passed 'em. (So much for the sanctity of "free markets.")
Employers started competing for workers with benefits, notably health insurance.
1950s, congress made premiums tax deductible, but ONLY FOR FIRMS. Not individuals.
Employers started competing for workers with benefits, notably health insurance.
1950s, congress made premiums tax deductible, but ONLY FOR FIRMS. Not individuals.
@Noahpinion 3/ No sensible employers/employees would compensate with taxable wages (w/ individuals buying insurance) when they can use tax-free insurance premiums instead.
This locked us into the insane employer-based health insurance: get sick, lose your job, lose your insurance.
This locked us into the insane employer-based health insurance: get sick, lose your job, lose your insurance.
@Noahpinion 4/ The graphs are largely explained by health-insurance prices growing so much faster than wages. (What deflator is being used for Real Compensation?)
@Noahpinion eg: "Nearly all analysts would agree that the CPI-U-RS is a perfectly appropriate deflator for making comparisons of household income or wages over time." epi.org/publication/un…
