Compensate workers more. — Mikie
Compensating workers more drives up the spiral and leaves retirees behind in the dust. — jgill
No it doesn’t.
The excuses for keeping wages low are getting more and more pathetic. Now it’s supposed to hurt old people… :roll: — Mikie
"Perhaps that's acceptable since ageism is thriving"
ego requiem meam causa. — jgill
No it doesn’t. — Mikie
the idea that workers being paid a living wage in the richest country on Earth somehow hurts older Americans is a lie — Mikie
I don't think the liberal response to rate hikes is ageism. It's just an impotent gesture — frank
Not talking about a "living wage", only raising wages in general for the purpose of blunting inflation. That's a recipe for leaving older generations on fixed incomes behind. — jgill
wage-inflation spiral. — jgill
(Wikipedia)Milton Friedman criticised the concept of wage-price spirals, arguing "It's the external manifestation of inflation, but not its source... the inflation arises from one and only one reason: an increase in a quantity of money.
Deal with inflation? (1) raise wages (2) raise interest rates.
(1) simply ignores inflation by feeding the wage-inflation spiral. (2) was pretty effective when Volker took the reins. But, admittedly, the country is in unexplored financial territory now. — jgill
Almost a year has passed since the Bureau of Economic Analysis, which estimates gross domestic product, announced that real G.D.P. had declined over the previous two quarters — a phenomenon that is widely, although incorrectly, described as the official definition of a recession.
Right-wingers had a field day, crowing about the “Biden recession.” But it wasn’t just a partisan thing. Even forecasters who knew that recessions are defined by multiple indicators, and that America wasn’t in a recession yet, began predicting one in the near future. As Mark Zandi of Moody’s Analytics, one of the few prominent recession skeptics, put it: “Every person on TV says recession. Every economist says recession. I’ve never seen anything like it.”
By late 2022, members of the Federal Reserve committee that sets monetary policy were predicting an unemployment rate of 4.6 percent by late 2023; private forecasters were predicting 4.4 percent. Either of these forecasts would have implied at least a mild recession.
To be fair, we don’t know for sure that these predictions will be falsified. But with unemployment in June just 3.6 percent, the same as it was a year ago, and job growth still chugging away, the economy would have to fall off a steep cliff very soon to make them right, and there’s little hint in the data of that happening. — Paul Krugman
If this is the case, or at least a close approximations, fiscal policy should play a larger role. We should be taxing those who benefited from the windfall monopoly-like profits to reduce aggregate demand instead of using a brute force tool like rate hikes (of course, you might still do hikes, very low rates appear to increase inequality long term in a corrosive way). We should also be looking at market share and trust busting with renewed vigor. — Count Timothy von Icarus
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