people may be jumping to conclusions about company layoffs. Most of it i think has to do with people refusing to go back to the office rather than some economic calamity waiting to happen
More people working, and being hired at higher pay rates, means more people have more money to spend. And since they have more money, they won't mind spending more money for inflated items they want or need. If everyone worked and made $1M/year, prices of goods would be totally out if control.
Good points. In Econ, they teach us that high employment results in inflation, just as you say. World events turned everything upside down and played havoc with the supply chain. So it is a true double whammy; consumers have more money and supply is decimated.More people working, and being hired at higher pay rates, means more people have more money to spend. And since they have more money, they won't mind spending more money for inflated items they want or need. If everyone worked and made $1M/year, prices of goods would be totally out if control.
A big reason all this inflation woke up and became a monster is because people were pent-up for 2 years and are now ready to get out and spend money on big stuff they held back on. Flood gates opened and demand skyrocketed, which caused a shortage of goods which couldn't be handled due to the Covid wind down, which caused a perfect storm for inflation. And people will keep buying as long as the feeling of missing out over-rides the pain if paying more for goods. At some point people will not buy stuff, except for items of necessity. The supply needs to go up, and the demand go down ... when will that balance happen.
The perfect storm for deflation is to make way more goods than demand, and then people with less disposable income will buy if the prices are low enough for them to justify. There might be a big price snap-back on some items like cars if the dealerships are someday flooded by over production of cars as the demand goes down.. maybe.
Here's an article from the WaPo... There are other articles as well. Wages and jobs are up across the board, which is to be expected in a hot labor market. And, of course, everything is regional.
Is this a typo or are you agreeing with me...... because your contradicting yourself ?
I posted the definitions of the economy and the stock market in post #328.
Great jobs report and surprising inflation report.Wadda you know....CPI rises less than expected. Rally Time
Not sure why some of them are not playing both ways. Makes zero sense to be inverse then just go to cash. Long or short term.
