This is what Economy 101 taught in college level (regarding to higher earner save more because they can afford to), it is not something political.
Why is it taking so long for production to come back?
- Thread starter grampi
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Face it... it's human nature. A lot of people have gotten used to having a lot of time on their hands the past year and aren't that excited about going back to the daily grind. Watching cat videos is a lot more fun than gutting chickens or cleaning toilets.
As much as I'd like to laugh, that unfortunately is all too true for some.
I have no idea if you are correct.
I also have no idea how such people pay the bills.
Each of us has a limited number of working days. You will retire one way or another.
Make the most of your time or you will be crying later.
Why would they run out of money? They'd have to increase the prices that they charge which everyone else is already doing...
The extra $300 per week the feds added to unemployment payments is set to end in September. Then only the state benefit will be left, and those have time limits. You don't get unemployment forever. Benefits end after a certain number of weeks, though that's extended during bad times. Any remaining extensions will soon end.
For the remaining states that give the extra $300, we'll see what happens this fall when that money ends. My suspicion is that plenty of people in those states will suddenly start looking for work in September. A lot of employers looking for help will get it in a few months.
The situation now with employers offering new hires higher pay, signing bonuses, etc., will quickly end sooner than we think. The company offering grunt workers $20 per hour to start will dial back that figure to $12 by this time next year.
For the remaining states that give the extra $300, we'll see what happens this fall when that money ends. My suspicion is that plenty of people in those states will suddenly start looking for work in September. A lot of employers looking for help will get it in a few months.
The situation now with employers offering new hires higher pay, signing bonuses, etc., will quickly end sooner than we think. The company offering grunt workers $20 per hour to start will dial back that figure to $12 by this time next year.
Lots of kids will be heading back to school, too, so a number second wage earners will be back in the workforce.
And you don't see the never ending cycle of rising prices this would cause? Since when is inflation a good thing?
Just in time inventory means that if you missing only one item (say computer chips for example), your entire production may not be able to complete a single item.
When you are the borrower against the rest of the world and you get to print money all you want with the biggest military in the world.
Depends.
Some housewives / stay at home dads will finally get to work on site without watching kids at home. Some college kids will no longer work part time but go to school full time, my bet is the stay at home parents going back to work is going to be more than part time college kids going to school and stopped working.
Have you been paying attention to the economy? It's had inflation for years. it's just that it's been in the 1-2% range. I don't know about you, but for me, it's still good. Rents are higher, stock market keeps setting new highs every few days. You always worry about the sky falling. It actually fell last year when the market cratered, but then came right back after a few months. This inflation is expected to be temporary and not a long term thing. We will see I guess.
How does that make inflation a good thing?
The price of gas has increased more than a buck a gallon, wood has doubled in price, vehicle prices are insane (if you can even find what you're looking for), meat prices have doubled, real estate prices are ridiculous, and you're talking about inflation at 1-2%? Are you paying attention? Let's hope for the good of the country this is only temporary...
The latest ShadowStats estimate for inflation is just over 13%.
Now I usually take their numbers with a grain of salt but my sense is that we are probably around 8% or so.
Those are expected to be temporary. The price of lumber is also on the way down, it's down to $642 now, some are projecting $350 by August.
https://markets.businessinsider.com...look-august-analyst-commodities-prices-2021-7
Gas prices could come down if Opec decides to open the spigot. It's not like there's a real shortage, they just cut back during the pandemic to prevent prices from cratering and they haven't opened it back up yet. Real Estate prices have been crazy for years. You can still get a rotisserie chicken for $5 at Costco.
You inflate away your debt. Basically since 50% of all USD is outside of US, every dollar you print penalize your economy at 50c only.
You also inflate away Joe Sixpack's retirement savings that way, too.
That's how CPI is calculated for decades. If you can come up with a better way please do and convince the world to take it. Rent in some area reduced (maybe because people aren't paying, maybe because people give discount to trustworthy rich tenants like how my parents do it now, maybe people move out of expensive cities to suburb), mortgage interest is lowered, oil price last year went negative for a short while, etc.
Also don't forget how they calculate "equivalent" items when things changed. They don't make manual hand crank window car with 1.4L anymore, so they sort of "adjust for inflation" and substitute a higher end model for a higher end model, or something like that.
I personally don't trust these numbers as the real cost of living these days are rent / mortgage / student loan / tax. Last year some prices went up (construction material, flour and butter, toys, cars, etc) and some went down (vacation, plane tickets, because nobody dare to go), but a lot of people I know saved a lot of money by not going on vacation / not dining out / etc. Also a lot of people are not commuting so they were saving on gas.
The real problem though is medical insurance / home price are going through the roof, other stuffs are likely short lived manufacturing shortage that will go away in a year or so, we no longer have TP shortage anymore now.
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