As with the WMD lies used to justify the deadly Iraq war, and financial deregulation triumphalism leading to the 2008 financial crisis and bank bailouts, the fake media narrative about inflation became conventional wisdom, was echoed by lawmakers, and justified specific policies. In this case, the narrative provided government officials justification to cut off pandemic aid, block new spending, abandon any push for a minimum wage increase, and raise interest rates with the express goal of driving down workers’ wages.
The results: a sharp increase in the number of Americans who can’t afford to pay their bills, and now mass layoffs amid a slowing economy.
Directing blame for inflation away from corporations and toward government spending that temporarily boosted the working class was lucrative for the world’s wealthiest like Bezos and for the giant companies that belong to corporate lobbying groups like the U.S. Chamber of Commerce.
The discourse manipulation helped stall momentum for anti-price-gouging legislation, higher taxes on the wealthy, and an excessive corporate profits tax. The propaganda also provided a justification for companies to keep jacking up prices as the government inflicted economic pain on workers and families.