Are Unions To Blame?

Unions are accused of causing inflation. But unions cannot create new money and credit, so they cannot be held directly responsible for inflation. But just as business can exert pressure on government to inflate, so can monopoly wage increases. A good example is the credit the government created to bail-out the Chrysler Corporation, largely to finance a labor contract that pays the employees twice the average industrial wage. But unions, like businesses, can only persuade government to inflate if the inflation mechanism is in place. A redeemable currency would make this impossible.