In the game of Stupid or Liar? I'm filing this one under Stupid, I think he actually believes what he's saying.
At this point, I don't see the difference if he believes what he's saying or if he believes what he's saying will have a positive effect on the country.
If he doesn't know how to factor inflation, he's a freaking moron.
If he doesn't think that people he says this to will eventually do the work themselves to factor inflation, he's a freaking moron.
If he thinks that people will be better if companies are allowed to pay them less than a living wage, he's a freaking moron.