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forumposter123@protonmail.com's avatar

1) Inflation outpaced wage growth since 2020, and so real wages fell.

2) The fall in real wages spurred demand for labor.

3) But the people receiving lower real wages, while they had jobs, felt like they were working more for less.

4) Hence you can have low unemployment and poor consumer sentiment at the same time.

5) Whether inflation is moderating and how that will affect real wages going forward we will see, but employers and long term debtors "stole a march" on their counterparties during the pandemic with "surprise" inflation.

6) I get the sinking feeling that there is a lot of low interest rate debt on peoples balance sheets that is unsustainable in a high rate environment, but since whenever it comes to the for there is a bailout its hard to know.

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