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The stock market face plant last week proves one thing. The investor economy is based on human cruelty. Repeatedly analysts gave a reason for the mini-crash in the stock market:  Fear of wages finally moving upward. Investors like it when wages don’t keep pace with inflation, but the moment they fear that wages might increase the stock market tanks.

Dow Jones Face Plant

Dow Jones (DJIA) drops with fears of higher wages

Analysts explained that higher wages would lead to inflation, which makes investors look smart, not cruel. So, was inflation the real reason, or was it just about higher wages?

It’s About Wages Stupid

Fortunately, this week gave us the answer. The measure of inflation is the Consumer Price Index (CPI.) This week the latest CPI report came out for January. If the CPI was up, it would confirm the fear of inflation, if not, then all was well and the stock market would continue to climb.

The CPI news?

Eight straight months of higher consumer prices

The CPI went up, big time. It was confirmed. Inflation is here…but wait, where is the big fall in the stock market? Why is it going up? You guys, it’s inflation! You’re not supposed to invest when inflation is on the rise! That’s what you said last week!

No surprise here. Investors don’t like workers getting more pay. Inflation has nothing to do with investor fears. Eight straight months of increased consumer prices and January has the largest increase, so inflation is real, but investors don’t seem to care.

The truth is that corporations and investors don’t like higher wages for working people. It is a threat. Investors wear their heart on their stock chart when it comes to better wages. The steady growth in the stock market while wages remained stagnant for workers is the best indicator how a rising stock market reflects the depravity of investors.