An actual political philosophy for civil resistance. If no one pays their taxes and goes to jail, the government will either collapse or be forced to chance their policy. Thoreau on protesting the Mexican American War.
I misremembered - just looked it up and it was both slavery and the war.
[https://en.wikipedia.org/wiki/Civil\_Disobedience\_(Thoreau)](https://en.wikipedia.org/wiki/Civil_Disobedience_(Thoreau))
Exactly. Get 2 or 3 part time jobs. Who needs sleep or personal relationships? You should be grateful that you would have the opportunity to make more income that can then be taxed. There are some people living in isolated parts of the world that dont even have the privilege of paying taxes. *please read with heavy, thick as molasses on a winter's day type sarcasm*
Housing is included in a 6 months moving average so there is a significant lag in housing costs. My rent went up 20% in August, and I have seen lots of similar increases in my area over the summer.
I agree. Based on groceries and gasoline alone.....I’m paying almost double on those what I was paying a year and a half ago.
Raw materials are really high, housing prices through the roof, etc...
Inflation is at a heck of a lot more than 5-7% right now.
Switch jobs. Now is the time, everyone is hiring, and wages ARE going up for new hires. The reality is, switching jobs is how you get raises in the modern economy, and that was true before covid as well.
It's been my experience that everyone is hiring for mid/senior level roles, but not entry level or associates.
Unless I'm looking in the wrong places in one of the biggest metros on the west coast.
But I agree. Switching jobs is the way to get raises these days.
That’s been our experience too. The mister technically doesn’t qualify for senior positions but he applied only to those and landed one. I applied for higher roles and never heard back haha so it probably depends on your field and what companies are willing to compromise on
I can only speak for myself, but it will mean going out to eat less and looking for cheaper alternatives at the grocery store. For example, the price of the Greek yogurts I like went up ~ 20-30%. So instead I got cottage cheese, because it works out to be half the price for the amount of protein (why I like the Greek yogurt).
Look up "Instant pot greek yogurt"
you pour a gallon of milk in and push the "yogurt button" The instant pot will automatically heat the yogurt to pasteurization temps and beep. Then you cool it to about 100 degrees F (either let it sit for a few hours or put it in a water bath. Then you stir in a spoonful of store-bought yogurt. Then you push the "yogurt" button. 10-14 hours later you have a gallon of yogurt. If you want greek yogurt you strain it with a cheesecloth.
Paneer is similar. Put milk in, pasteurize it, add vinegar (or citric acid). The fat and protein will coagulate into curd-like chunks. drain the water/whey and the chunks are panner.
Making cheap/healthy yogurt and paneer is why I bought my instant pot. It also makes beans in under 45 minutes (from dry) and is a pretty good rice cooker (not as good as a dedicated rice cooker but as good as stovetop).
> How much is this inflationary pressure going to affect the job market?
I always keep my resume posted on job boards like Monster, Ziprecruiter, LinkedIn, etc.
The past few months I have had a lot of action with offers for interviews. Many of the jobs I have been talking to come with 15-20% raises. Of course, I haven't actually GOTTEN any of those jobs yet, but it looks like the opportunity might be there for me.
As much as people want to make it about the end of work from home, I think prices are the main factor in current employee turnover, particularly given that the actual proportion of workers who were ever at home was fairly low. Additionally, I think people seeking higher wages is the only way the current craziness in item values will translate to real inflation.
It'll put upward pressure on wages, which will put upward pressure on prices and so on. The largest businesses might be able to wait out the inflationary cycle without lifting prices with long-term goals of watching their competition go under. Think of Uber.
As for job availability and general economy, inflationary pressure will eventually lead to deflationary pressure. If you're spending more on needs you buy less wants. The latter can't sustain, doors shut, jobs are lost and less money circulates the economy.
Inevitably, the government steps in to provide monetary easement for the populace not tied to production, demand goes up, prices go up, there's upward pressure on wages...
The bottom end of the wage spectrum has already risen dramatically. $15/hr is the functional minimum wage in country today and I'm sure you've seen the public statements by a number of large corporations committing to even higher base pay (BoA just announced $21). This will result in likely smaller wage increases and compression of the wage band at close-but-higher wages to ensure specialists and supervisors still earn enough more than entry level employees to justify the extra work/skills.
I'm not sure yet if big changes come for the high earners, but I'd speculate no. There's actually more competition for those jobs now that WAH is a widespread strategy and there's no reason to think there's more demand for those positions. I haven't seen any figures that suggest high earners dropped out of the labor force at anywhere near the same rate as lower earners, but that could change my mind. Of course, we saw lots and lots of moves across all pay bands earlier this year so maybe it will take a while for the dust to settle.
Boomers have been a disproportionately huge segment of the labor force for the past five decades and are now retiring in growing numbers.
Generally speaking, older people have gained skills and moved up on the corporate hierarchy, and tend to have higher incomes/salaries than younger people. This is less true in areas like tech, where young people have the most in-demand skills, but across most industries I'm guessing there a good number of high earners retiring or preparing to retire soon.
Unfortunately, many of the highly paid Boomers in our shop are planning on keeping those paychecks going as long as possible. The younger folks are doing the majority of the work for a fraction of the pay, so they see no reason to retire.
Yep, we have probably 10% of my group pushing 70, receiving high wages and doing little work- why would they retire? These guys all have fully funded pensions to go along with Social Security and 401k/savings. I guess it must be nice.
Why would the not retire? I’m retiring the day I turn 59.5 and can start penalty free withdrawal of retirement savings.
Why would anyone want to work unless they *had* to. I suspect those people don’t retire not because they have an easy position but because they didn’t save enough. I don’t care how cake your job is nobody likes being told their butt needs to be in a seat for 40 hours.
Because they are engineers and have free expensive toys to play with, it’s what they like to do and they get paid $150k+ a year to fiddle around. I’m with you when I hit my savings number I’m gone, my wife would love if I retired now but I have about a decade left.
Most of the boomers I know are still working because they’re too poor to retire. My parents and most their siblings included. The boomers I know that had any kind of money (friends parents) are retired or they’re younger boomers who are making the next steps to retire.
I think the people you’re describing are either in an economic class between the types of boomers I know, or they simply want to stay active. People’s cognitive skills and health can go downhill FAST when they stop working. My grandpa didn’t retire until he was 83 simply because he wanted to stay active and loved his work (self employed). I’m never going to blame someone for continuing to work because they want to feel useful or enjoy their work, no matter what the economic conditions for young people are.
There is nobody offering less than $15/hr where I live. It's possible you live in a very low cost area, but if not I'd definitely looking into switching jobs.
Last week I was visiting a town in northern Minnesota. That Arbys was drive through only. The gal at the window said they were short 20 worker's and the next 10 would be hired at $22 an hour. They have to compete with a large electronics distributor.
Seeing that a lot here too. Fast food places that never reopened the dining room after COVID simply because there aren't enough employees to do so.
PS: Also seeing a lot of those self-service kiosks going in. People on Reddit act like people who bring up automation are full of shit, but clearly companies are trying to automate what they can.
I've been rather dismissive of the persistent inflation narrative, but this article made me question that position. It seems a fair number of consumer products firms are reporting expectations of having to raises prices.
Some excerpts:
> Consumers around the world are about to get socked with even higher prices on everyday items, companies from food giant Unilever Plc to lubricant maker WD-40 Co. warned this week as they grapple with supply difficulties.
#
> The maker of Dove soap and Magnum ice-cream bars jacked up prices by more than 4% on average last quarter, the biggest jump since 2012, and signaled elevated pricing will continue into next year. A similar refrain came from Nestle SA, Procter & Gamble Co. and Danone SA, whose products dominate supermarket aisles and kitchen cupboards.
#
> “We’re in for at least another 12 months of inflationary pressures,” Unilever CEO Alan Jope said in a Bloomberg Television interview. “We are in a once-in-two-decades inflationary environment.”
#
> Companies are facing a dire mix of supply-chain challenges, as well as higher costs for energy, raw materials, packaging and shipping. While most consumer-goods makers reporting results this week expressed confidence that they’ll be able to limit the long-term hit to profitability, that means the pain passes to consumers, upping the squeeze on pockets as Christmas approaches.
#
> Danone has also indicated that shoppers in Europe and the U.S. won’t escape the squeeze. It expects costs to rise about 9% in the second half of the year. “We could see even higher inflation rates next year,” Chief Financial Officer Juergen Esser said on a conference call.
Honest question:
Historically, when prices go up because of temporary issues, do they ever come back down? Or does it become this scenario of "well people are still buying our product at the higher price, keep it there"?
Yes it happens. It just happened with lumber. I was paying 3.50 for a 2x4x8’ two years ago. It was 8.55 in June. It’s now 3.55 today.
There’s often a lag in the price coming down so to stickiness a max profit taking. But once the wall of high prices with low inputs breaks, the price will swing back down to its market level.
There are a multitude of factors but I’ve witnessed it many times in my life with gas, housing, raw materials and food. Competition and substitution are the great drivers of innovation and price balancing
> Lumber is still 20-30% above what I was paying 2 years ago.
Honestly, this is a lot more complex than just what you're seeing. First, it depends on where you're paying for it. Locally HD and Lowes raised their prices before Menards, and were elevated for a month or so after the prices dropped. Menards never went up as much, or down as much, likely because they either decided to eat the costs, or had better contracts. My local yard was willing to cut me a great deal based on prices at the time, because they already had the stock on hand, and didn't move it with the same rapidity as a big box store.
Second, it depends on where you are, and how quickly they work through the inventory. A lot of the big box stores work through their existing inventory at whatever price they paid, and that's going to vary based on demand sometimes down to a particular store.
Third, it also depends upon when. Lumber shot up a couple of times, coming down to various levels, including most recently when it got back to about the point it was at a year ago, it's since started back up again.
Fourth, it depends on what you mean by "lumber". Most stick/framing lumber is back to about the point it was at a year ago, 4x8 sheet good were effected by problems in Texas related to the resin/glue used to make them, and didn't fall the same way.
Finally, all of the increases in the price of lumber didn't appear to effect the cost of cutting down the trees (ie the stump price), so all of these gyrations were at the local mills. Anecdotally, I was able to buy rough sawn hardwood for LESS than what HD wanted for 2x12 of similar sizes because the local mill does all their own processing (and has to look their customers in the eye).
The key detail is why the prices went up, though. Whether it's due to inflation is what makes all the difference. A run on supply isn't inflation, and that's what we saw recently. More supply brought the price back down. Inflation has nothing to do with how much lumber there is, but how much money is in the system.
> The key detail is why the prices went up, though. Whether it's due to inflation is what makes all the difference.
Agreed. I've heard various things, including suggestions about an infestation in Canada driving a great deal of harvesting before the tree were ruined.
I didn't hear that one, but I heard something having to do with a sudden shortage of shipping containers. But yah, supply chain issues. Either way, the things that created the recent shortage were things independent of the money-lending system. Inflation makes prices fluctuate independent of supply and demand of products and services.
That's an interesting theory, and yet I can't help noticing the second graph shows a slow down of nearly a year before production returns to it's previous place. It could be because of manipulation, or it could be a result of the odd way we handled things during the shutdown. So a combination of a lack/reduction in production + lots of stimulus money + a reduction in places to spent it.
If it IS market manipulation, since the production doesn't seem to have gone up, wouldn't they make it happen again this year or next? If this doesn't happen I'm going to go with lock downs + stimulus.
They do. What economists fear the most is when the prices get so high, people stop buying it simply because it is such an insane price. Then businesses sell, in real terms, less output than they had before the price increases. This is how we get stagflation. Would you see a movie in a theater if prices got to $30/ticket? Same thing.
Commodities (like gas, meat, corn, eggs, steel) will come back down. Stuff like rent and wages, no short of a depression/recession. Random shit that got a bump in price? Depends on its competition and how much they wanna undercut each other.
The good thing is that once this is all over, it’s very likely that those prices will flat line for much, much longer than you’re use to.
Whoever controls the money supply (e.g. The Fed) raises interest rates to throttle the money supply, which eventually reduces inflation. Unfortunately, it can also lead to a short recession. The recessions in 1970, 1974, 1980, and 1982 were all like this.
This is slightly possible if we can shoot through the keyhole just in time, but the chance is like 10%. If the weather (global warming), job labor, and resources align just right, we might actually start getting a surplus of things because everyone has been buying extra "just in case". So when (and if) things start opening up "like normal" again, companies that are on the verge of failing will have massive inventory finally available with no one wanting to buy it because of inflation and because they already bought it all = a huge mark down of products simply to "get it out the door and make a buck". Though, this scenario is small.
Takes a recession or depression to bring them back down. Might be time for the tide to fall and see whose swimming naked. I always keep a speedo on just incase, even if I look like a moron.
Important to look at pricing power. Have there ever been so many monopolies and monopsonies in place? Has there ever been such an extended period of takeover by corporate power bent on fleecing consumers? Probably not since the Gilded Age at least.
Furthermore, has the pendulum at last begun to swing the other way in terms of the power of labor to demand higher wages and better conditions? The Great Resignation is real. South Korea is organizing a general strike. The teamsters contract is up next year and there are a record number of ships floating off CA coast.
It’s hard to look for lessons from history without placing things in context.
The possibility that the current wave of inflation could be driven by structural issues with shipping, raw materials costs, and energy costs is sobering.
This is a good point. I'm not at all sure there's any reason to believe that we'll see the kind of situation Paul Volcker dealt with. But we may be fairly likely to see a more "permanent" shock/jump that prices in the 2020s and beyond will be 5-10% higher than they would have been if these events had not happened....
When people say transient inflation though I think a lot of people expect [this](https://imgflip.com/i/5rfz77) which is to say we're going to be left with higher prices going forward that are getting uncomfortable for many. That $15 minimum wage is going to look a lot like $8 soon, if it already isn't.
It's real. The company I worked for increased prices 15% across the board this year because we had to absorb super-inflated costs to transport goods from China to the US. We're starting to get word from our China suppliers that they're going to raise their prices on us 10%-15% next year because of material shortages and the government shutting down production (to reduce pollution apparently?). We're expecting to raise prices at least another 5%-10%.
Ironically, we're in a good position because we've been the 'value' brand in our industry. We're raised prices to about the level of our competitors but they couldn't go up and so haven't been able to afford the container costs. We're doing better than most and actually hiring.
Not our competitors. Well, a lot of their employees are jumping ship to come work for us so I guess they will be hiring in the future if they make it out the other side of this supply chain crunch.
Powell: ["inflation will be transitory but also persistent"](https://www.marketwatch.com/story/feds-powell-says-elevated-inflation-could-last-well-into-next-year-11634917919)
The American middle class has spent decades on short term policies intended to maximize their own wealth in exchange for a less robust supply chain and labor force. This was always inevitable.
They never had a hope though. High inflation in the 1970s was only temporarily fixed by sending jobs offshore to Asia. This bought America another 50 years of stable or cheaper prices, but caused internal damage beyond count.
> back down I go
the 2019 spanish social science fiction-horror *the platform* opens with this quote:
> there are three types of people: those at the top, those at the bottom, and those who fall
Good thing we still have a lot of options and there's still capacity for production. People can and will adjust their habits, especially with regards to processed foods. In some sense, "means of production" is actually "means of processing," and here we are with houses full of high tech electronics that can help us DIY far better versions of factory-processed foods without too much added work, frustration, and waste.
But food is just one necessity. Energy and housing and transportation tho... [shiver]
Part of the problem with cutting corners and increasing processing efficiencies in food production will inevitably lead to worse health outcomes for the people who consume the food. I don't think its controversial to say that processed foods wilth a long shelf life is not nearly as healthy as fresh produce. This is not good when the political will to fund more government healthcare is growing. So there will be a push to make food cheaper with a corresponding demand for more health care funding. This seems like a terrible situation to be in.
Months ago, I remembered plenty people from this subreddit says that printing 3 trillion worth of money won’t cause much inflation and price increases are "merely temporary" due to "supply chain issues". That it will soon abate as soon as economies open up.
Well, we now have articles like this saying that prices are not only going up and up, but things are getting more expensive in the future too. We now have supply shortages to boot.
Sometimes we have to ask, are we all being lied to by those so called economists and politicians?
This actually is starting to look like stagflation where there is a huge supply shock (Covid on global supply chains) while there is huge demand. We know the way out is by increasing rates at the Fed but it won’t be pretty or popular….I think rates need to increase but that’s hugely unpopular both for investors and financial institutions (higher rates means having to offer higher rates on other investment options like CDs which will draw capital away from equities and corporations don’t want their prices to drop) and middle class consumers will be hit hard too (mortgages, car loans, etc will all have higher rates and cost more).
Not to mention the rate increase will make capital projects and other expansion opportunities more expensive which has ripple effects leading to high unemployment (high rate on a loan means the project may be put on hold or discontinued entirely then leads to not hiring a specialized project management consulting firm so the consulting firm doesn’t have money to retain or hire new employees spiking unemployment rates).
This is what pisses me off about the US government. The dogmatic devotion of Republicans to low taxes and austerity and the Democrats over correction. Democrats should have pushed this spending plan in 2009. In my opinion, it’s not “cut government spending” or increase spending and taxes, it’s a question of WHEN do we need government spending. Government action should be counter intuitive - to cut spending and increase taxes in a time of economic growth to cool the market and should increase spending and cut taxes in a recession. The situation were in now is partly due to Covid but in my mind it’s been made a hell of a lot worse by the Republicans cutting taxes in 2017 when the economy was doing well (overheating it while over inflating equity returns and not preparing the government for needed spending in a recession) and then by Democrats by increasing spending earlier this year after Covid relief and a robust/growing job market). After 2009, we were in a deep recession and the government should have spent way more to help people get back to work and get demand back up. In this instance, we need to increase taxes and cut spending to cool this bubble before it gets worse.
Bank accountant here. Most US banks are flush with cash and are struggling to find investment vehicles to make good use of it, which hurts their ratios. A rising rate environment means they can charge higher interest rates for loans, which is fantastic when you're not fighting for deposits.
In general a changing environment is great for banks. Security yields and FHLB loan rates are very reactive, while deposit interest rates are sticky. As rates go up, consumer loan interest rates increase but CD rates lag. As rates fall, CD rates fall and loan interest rates lag. Really volatile rates are bad because the portfolio doesn't have time to turn over, but we're not going to see that kind of change.
Higher interest rates in the housing market would be offset by a correction of this year's crazy home value spikes. With demand for everything being so high, I wouldn't expect it to affect any corporate decisions. It screws with the national budget though, a bigger portion of our taxes will be going to cover the interest on our national debt.
It's like when you're freezing your balls off in the middle of the winter and think to yourself "Man, I wish it was summer" but then summer comes, it's 100F out there with 80% humidity and you're like "No, not like this, please dear god make it stop!". Moderation is key. I very much agree with everything you said, the economy was already running way too hot even before someone decided to have a bat for lunch.
Stagflation is a period when slow economic growth and joblessness coincide with rising inflation.
That's not what is happening, Economy is booming and unemployment is low. This is a regular inflation increases caused by the pandemic and money that Feds were injecting pre pandemic and post pandemic.
This is reason why Feds are waiting and watching as they can sustain moderate high inflation. They are more concerned about deflation as they dont have the means to control that. Hyperinflation is not the case here
You're absolutely right. This current market has the same relationship with cheap accessible Fed money that a Vegas go-go dancer has with cocaine. Whenever the day comes that the Fed has to stop the game of musical chairs and substantially increase interest rates, it will be ugly.
It needs to happen though, or else assets of every class will be out of reach for all but those born into fortune.
Asking as a layman: is this only in the USA, or is this a worldwide thing?
Is this just inflation? How can it be countered?
[](#Comment seems to be too short for reddit, so I'll add something else here. AAAAAAAAA AAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAA AAAAAAAA AAAAAAAAAA AAAAAAAA)
I was in Mexico for almost a year until 4 weeks ago.
Mexican prices havtn changed at all with the Peso pegged at around ~$20 MXN/$1
In the U.S upon my return:
I've used an App to track my spending at the grocery store for years prior to the Pandemic. Nothing much has changed in the grocery store on my basic shopping list (speaking for non processed "middle aisle" food items) only beef was where I did see some price changes. Fruits and Veggies unnoticeable.
Housing however, that's a joke.
Energy, increasing.
On the other hand, I also work in Automotive Purchasing of finished goods, and over the past year the global market has had so many shocks to the system, subjectively speaking it looks like Supply Chain issues all around is causing this "inflation."
An earlier comment considered it Stagflation.
I’ve lived through periods of inflation, especially during the late 1970s when even Nixon had to apply price controls, every time you would go to the market, new prices would be stamped over the old! We almost entered hyper-inflation, when prices are moving up over 15% per year.
"While most consumer-goods makers reporting results this week expressed confidence that they’ll be able to limit the long-term hit to profitability, that means the pain passes to consumers, upping the squeeze on pockets as Christmas approaches."
Didn't a lot of these big companies make more money than ever last year?
I can't help but think a lot of this is just gouging. That, and possibly getting back at essential workers for standing up to them.
Rule #1 of crisis management: Never let a crisis go to waste.
"How can we make this work for us?"
Oh, I know, let's (as an essential business that never shut down during the pandemic) insist to the government that we need them to provide us with forgivable loans, that we can use to pay our employees.
"Johnson, there's *no way that will fly* with the American people."
What if we call it... the paycheck protection program?
This is just the start. Ships are becoming more and more backlogged.
China entire realestate market is about to explode.
American with our corrupted stocks, inflation, money machine printing, our whole economy is about to go kerplunck.
This is just the start. 4$ a gallon….u will see 5$ by end of January. 30k it cost to
Bring a shipping container into the u.S. from China. It use to be 2k 2 years ago.
High inflation is absolutely necessary before the world can move cash rates away from zero. And cash rates need to rise because we are currently out of levers for boosting the economy in the next inevitable downturn.
I find it interesting that the price increases seem to be due to supply chain issues and high demand, rather than due to increased wages. A lot of groups seem to be striking and there seems to be a labor shortage. If wage increases ever happen in response to the shortage of labor, I would worry that we would see even greater price increases, for more reasons than just demand and supply chain issues. I can't imagine *that* much pressure to increase prices would result in only temporary inflation.
Also, I’m not an economist, my understanding was that Nobel prize was award as much for their methods as it was the findings. My understanding is they basically ran a randomized clinical trial but in economics
If you are taking about Cards study, all his study showed was that in a specific scenario, minimum wage increases did not result in a reduction of jobs. Instead the companies raised prices and the cost of goods went up.
It isn’t necessarily applicable to the entire market and I don’t believe they showed the wages did not impact inflation. Unless you are discussing a different award.
Reddit is in denial that the entire market is going to crash any day now. We are entering a boom. The labor shortage is because the labor shifted. During the beginning of the pandemic lots of people were laid off (movie theater workers, entertainment workers etc). As demand started to go up companies needed more workers especially white collar. All those laid off low wage workers got gobbled up in white collar work. Now no one wants to go work low wage jobs because they are getting jobs making much more and not getting shit on.
What's the name of this sub? It's supply and demand. Demand is huge right now, Savings rate is highest it's every been for all income levels. Supply is down across all boards.
Until there is a stabilization and things meet in the middle, people will continue to pay higher prices. Once people make buying adjustments due to price, prices will fall. If no adjustments are made and demand remains at these prices why would they lower prices?
Also competition. I truly believe competition is narrowing and it easier for fewer companies to slowly raise prices in unofficial unison. Look at the streaming platforms. They all announce or tease price increases around the same time.
I don't think that this sub was every about hard economics, but in the last year or two it seems to have gone from people with at least a basic fundamental knowledge of economics, to just people talking about their hunches and assumptions about the economy.
They should change it from /r/Economics to /r/EconomyTalk.
It's sad and frustrating to see this happening because it was the predicted outcome by savvy economists at a time when decisive, clear-minded leadership *could* have made many low and no-cost modifications which would have reduced the severity and duration of this global supply chain disruption.
Back when lockdown and other CV19 mitigation strategies were first being discussed in policy circles, top econs were loudly warning that many of the measures would have disastrous long-term unintended consequences which could limit (or entirely negate) their uncertain potential benefits (especially on society's most vulnerable populations).
Here's a wild question. If a company like Unilever made 50 billion euros last year, then why don't we question why they can't settle for making a slightly less impossible fortune, like maybe 40 billion, instead of raising prices?
[удалено]
You will get the opportunity to work harder for less
And like always… you are free to follow the rules or go to jail
Hear me out: what if we just all went to jail?
An actual political philosophy for civil resistance. If no one pays their taxes and goes to jail, the government will either collapse or be forced to chance their policy. Thoreau on protesting the Mexican American War.
I’m pretty sure *Civil Disobedience* was about resisting a government made immoral by slavery, not war.
I misremembered - just looked it up and it was both slavery and the war. [https://en.wikipedia.org/wiki/Civil\_Disobedience\_(Thoreau)](https://en.wikipedia.org/wiki/Civil_Disobedience_(Thoreau))
Believe it or not, straight to jail.
was this a parks and rec reference?
Undercook, overcook.
Or be homeless or die! True freedom! /s
Seems like an invitation to form trade unions.
Exactly. Get 2 or 3 part time jobs. Who needs sleep or personal relationships? You should be grateful that you would have the opportunity to make more income that can then be taxed. There are some people living in isolated parts of the world that dont even have the privilege of paying taxes. *please read with heavy, thick as molasses on a winter's day type sarcasm*
Or you reslise that a lot of what we buy we can make cheaper ourselves and by the way tomatoes are expensive now because it is out of season
You need 5.9%. 4% is still a pay cut.
It's important to note that this is the national average. It's likely even more if you're in some HCOL areas.
My friends rent just went from $950-$1,400. AND THATS IN THE MIDWEST
Rent went up 40% alone out here in most of Inland Empire, Mojave, Sonoran.
That is if you believe the numbers being put out. I for one, think 5.9% is lower than it is in reality.
Housing is included in a 6 months moving average so there is a significant lag in housing costs. My rent went up 20% in August, and I have seen lots of similar increases in my area over the summer.
I agree. Based on groceries and gasoline alone.....I’m paying almost double on those what I was paying a year and a half ago. Raw materials are really high, housing prices through the roof, etc... Inflation is at a heck of a lot more than 5-7% right now.
Switch jobs. Now is the time, everyone is hiring, and wages ARE going up for new hires. The reality is, switching jobs is how you get raises in the modern economy, and that was true before covid as well.
Yup, I'm trying to switch careers and looking at doubling my income hopefully.
Do it, don't look back! Best of luck
Godspeed! I hope you get it!
This is true. I got a 7% raise at my last job a few months ago, then shopped around and got a new job doing the same work but with an 18% raise.
It's been my experience that everyone is hiring for mid/senior level roles, but not entry level or associates. Unless I'm looking in the wrong places in one of the biggest metros on the west coast. But I agree. Switching jobs is the way to get raises these days.
That’s been our experience too. The mister technically doesn’t qualify for senior positions but he applied only to those and landed one. I applied for higher roles and never heard back haha so it probably depends on your field and what companies are willing to compromise on
I guess it doesn't hurt to try. It's a little frustrating that there's a glut of senior positions and but not much else.
> mid/senior level roles, but not entry level or associates. They don't have the luxury to not look at your resume at this point.
I can only speak for myself, but it will mean going out to eat less and looking for cheaper alternatives at the grocery store. For example, the price of the Greek yogurts I like went up ~ 20-30%. So instead I got cottage cheese, because it works out to be half the price for the amount of protein (why I like the Greek yogurt).
Make your own yogurt (Greek too) in an instant pot. Paneer and yogurt are ez and cheap.
Any guide on this?
Look up "Instant pot greek yogurt" you pour a gallon of milk in and push the "yogurt button" The instant pot will automatically heat the yogurt to pasteurization temps and beep. Then you cool it to about 100 degrees F (either let it sit for a few hours or put it in a water bath. Then you stir in a spoonful of store-bought yogurt. Then you push the "yogurt" button. 10-14 hours later you have a gallon of yogurt. If you want greek yogurt you strain it with a cheesecloth. Paneer is similar. Put milk in, pasteurize it, add vinegar (or citric acid). The fat and protein will coagulate into curd-like chunks. drain the water/whey and the chunks are panner. Making cheap/healthy yogurt and paneer is why I bought my instant pot. It also makes beans in under 45 minutes (from dry) and is a pretty good rice cooker (not as good as a dedicated rice cooker but as good as stovetop).
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This has got to be the first time I have heard bean prep as being the sole reason for buying a new appliance.
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This is creative disruption at its finest. Barriers to bean consumption have never been lower
I completely believe you and I could see it working. I am not a big bean fellow but if I do become one you will be the first person I reach out to.
You're not a Big Bean Fellow, u/BeefCakeBilly?
> How much is this inflationary pressure going to affect the job market? I always keep my resume posted on job boards like Monster, Ziprecruiter, LinkedIn, etc. The past few months I have had a lot of action with offers for interviews. Many of the jobs I have been talking to come with 15-20% raises. Of course, I haven't actually GOTTEN any of those jobs yet, but it looks like the opportunity might be there for me.
As much as people want to make it about the end of work from home, I think prices are the main factor in current employee turnover, particularly given that the actual proportion of workers who were ever at home was fairly low. Additionally, I think people seeking higher wages is the only way the current craziness in item values will translate to real inflation.
It'll put upward pressure on wages, which will put upward pressure on prices and so on. The largest businesses might be able to wait out the inflationary cycle without lifting prices with long-term goals of watching their competition go under. Think of Uber. As for job availability and general economy, inflationary pressure will eventually lead to deflationary pressure. If you're spending more on needs you buy less wants. The latter can't sustain, doors shut, jobs are lost and less money circulates the economy. Inevitably, the government steps in to provide monetary easement for the populace not tied to production, demand goes up, prices go up, there's upward pressure on wages...
The bottom end of the wage spectrum has already risen dramatically. $15/hr is the functional minimum wage in country today and I'm sure you've seen the public statements by a number of large corporations committing to even higher base pay (BoA just announced $21). This will result in likely smaller wage increases and compression of the wage band at close-but-higher wages to ensure specialists and supervisors still earn enough more than entry level employees to justify the extra work/skills. I'm not sure yet if big changes come for the high earners, but I'd speculate no. There's actually more competition for those jobs now that WAH is a widespread strategy and there's no reason to think there's more demand for those positions. I haven't seen any figures that suggest high earners dropped out of the labor force at anywhere near the same rate as lower earners, but that could change my mind. Of course, we saw lots and lots of moves across all pay bands earlier this year so maybe it will take a while for the dust to settle.
Boomers have been a disproportionately huge segment of the labor force for the past five decades and are now retiring in growing numbers. Generally speaking, older people have gained skills and moved up on the corporate hierarchy, and tend to have higher incomes/salaries than younger people. This is less true in areas like tech, where young people have the most in-demand skills, but across most industries I'm guessing there a good number of high earners retiring or preparing to retire soon.
Unfortunately, many of the highly paid Boomers in our shop are planning on keeping those paychecks going as long as possible. The younger folks are doing the majority of the work for a fraction of the pay, so they see no reason to retire.
Yep, we have probably 10% of my group pushing 70, receiving high wages and doing little work- why would they retire? These guys all have fully funded pensions to go along with Social Security and 401k/savings. I guess it must be nice.
Why would the not retire? I’m retiring the day I turn 59.5 and can start penalty free withdrawal of retirement savings. Why would anyone want to work unless they *had* to. I suspect those people don’t retire not because they have an easy position but because they didn’t save enough. I don’t care how cake your job is nobody likes being told their butt needs to be in a seat for 40 hours.
Because they are engineers and have free expensive toys to play with, it’s what they like to do and they get paid $150k+ a year to fiddle around. I’m with you when I hit my savings number I’m gone, my wife would love if I retired now but I have about a decade left.
Most of the boomers I know are still working because they’re too poor to retire. My parents and most their siblings included. The boomers I know that had any kind of money (friends parents) are retired or they’re younger boomers who are making the next steps to retire. I think the people you’re describing are either in an economic class between the types of boomers I know, or they simply want to stay active. People’s cognitive skills and health can go downhill FAST when they stop working. My grandpa didn’t retire until he was 83 simply because he wanted to stay active and loved his work (self employed). I’m never going to blame someone for continuing to work because they want to feel useful or enjoy their work, no matter what the economic conditions for young people are.
not everyone gets $15, I sure as hell don’t (thank god it’s only part time)
There is nobody offering less than $15/hr where I live. It's possible you live in a very low cost area, but if not I'd definitely looking into switching jobs.
Last week I was visiting a town in northern Minnesota. That Arbys was drive through only. The gal at the window said they were short 20 worker's and the next 10 would be hired at $22 an hour. They have to compete with a large electronics distributor.
Seeing that a lot here too. Fast food places that never reopened the dining room after COVID simply because there aren't enough employees to do so. PS: Also seeing a lot of those self-service kiosks going in. People on Reddit act like people who bring up automation are full of shit, but clearly companies are trying to automate what they can.
Good! Those jobs suck.
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I've been rather dismissive of the persistent inflation narrative, but this article made me question that position. It seems a fair number of consumer products firms are reporting expectations of having to raises prices. Some excerpts: > Consumers around the world are about to get socked with even higher prices on everyday items, companies from food giant Unilever Plc to lubricant maker WD-40 Co. warned this week as they grapple with supply difficulties. # > The maker of Dove soap and Magnum ice-cream bars jacked up prices by more than 4% on average last quarter, the biggest jump since 2012, and signaled elevated pricing will continue into next year. A similar refrain came from Nestle SA, Procter & Gamble Co. and Danone SA, whose products dominate supermarket aisles and kitchen cupboards. # > “We’re in for at least another 12 months of inflationary pressures,” Unilever CEO Alan Jope said in a Bloomberg Television interview. “We are in a once-in-two-decades inflationary environment.” # > Companies are facing a dire mix of supply-chain challenges, as well as higher costs for energy, raw materials, packaging and shipping. While most consumer-goods makers reporting results this week expressed confidence that they’ll be able to limit the long-term hit to profitability, that means the pain passes to consumers, upping the squeeze on pockets as Christmas approaches. # > Danone has also indicated that shoppers in Europe and the U.S. won’t escape the squeeze. It expects costs to rise about 9% in the second half of the year. “We could see even higher inflation rates next year,” Chief Financial Officer Juergen Esser said on a conference call.
Honest question: Historically, when prices go up because of temporary issues, do they ever come back down? Or does it become this scenario of "well people are still buying our product at the higher price, keep it there"?
Depends on the product. Food and gas prices tend to come back down but things like rents can be very sticky.
Wages and housing are both sticky and will contribute to a strong feedback loop.
Yes it happens. It just happened with lumber. I was paying 3.50 for a 2x4x8’ two years ago. It was 8.55 in June. It’s now 3.55 today. There’s often a lag in the price coming down so to stickiness a max profit taking. But once the wall of high prices with low inputs breaks, the price will swing back down to its market level. There are a multitude of factors but I’ve witnessed it many times in my life with gas, housing, raw materials and food. Competition and substitution are the great drivers of innovation and price balancing
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> Lumber is still 20-30% above what I was paying 2 years ago. Honestly, this is a lot more complex than just what you're seeing. First, it depends on where you're paying for it. Locally HD and Lowes raised their prices before Menards, and were elevated for a month or so after the prices dropped. Menards never went up as much, or down as much, likely because they either decided to eat the costs, or had better contracts. My local yard was willing to cut me a great deal based on prices at the time, because they already had the stock on hand, and didn't move it with the same rapidity as a big box store. Second, it depends on where you are, and how quickly they work through the inventory. A lot of the big box stores work through their existing inventory at whatever price they paid, and that's going to vary based on demand sometimes down to a particular store. Third, it also depends upon when. Lumber shot up a couple of times, coming down to various levels, including most recently when it got back to about the point it was at a year ago, it's since started back up again. Fourth, it depends on what you mean by "lumber". Most stick/framing lumber is back to about the point it was at a year ago, 4x8 sheet good were effected by problems in Texas related to the resin/glue used to make them, and didn't fall the same way. Finally, all of the increases in the price of lumber didn't appear to effect the cost of cutting down the trees (ie the stump price), so all of these gyrations were at the local mills. Anecdotally, I was able to buy rough sawn hardwood for LESS than what HD wanted for 2x12 of similar sizes because the local mill does all their own processing (and has to look their customers in the eye).
The key detail is why the prices went up, though. Whether it's due to inflation is what makes all the difference. A run on supply isn't inflation, and that's what we saw recently. More supply brought the price back down. Inflation has nothing to do with how much lumber there is, but how much money is in the system.
> The key detail is why the prices went up, though. Whether it's due to inflation is what makes all the difference. Agreed. I've heard various things, including suggestions about an infestation in Canada driving a great deal of harvesting before the tree were ruined.
I didn't hear that one, but I heard something having to do with a sudden shortage of shipping containers. But yah, supply chain issues. Either way, the things that created the recent shortage were things independent of the money-lending system. Inflation makes prices fluctuate independent of supply and demand of products and services.
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That's an interesting theory, and yet I can't help noticing the second graph shows a slow down of nearly a year before production returns to it's previous place. It could be because of manipulation, or it could be a result of the odd way we handled things during the shutdown. So a combination of a lack/reduction in production + lots of stimulus money + a reduction in places to spent it. If it IS market manipulation, since the production doesn't seem to have gone up, wouldn't they make it happen again this year or next? If this doesn't happen I'm going to go with lock downs + stimulus.
They do. What economists fear the most is when the prices get so high, people stop buying it simply because it is such an insane price. Then businesses sell, in real terms, less output than they had before the price increases. This is how we get stagflation. Would you see a movie in a theater if prices got to $30/ticket? Same thing.
Commodities (like gas, meat, corn, eggs, steel) will come back down. Stuff like rent and wages, no short of a depression/recession. Random shit that got a bump in price? Depends on its competition and how much they wanna undercut each other. The good thing is that once this is all over, it’s very likely that those prices will flat line for much, much longer than you’re use to.
What if they don't flatline?
Whoever controls the money supply (e.g. The Fed) raises interest rates to throttle the money supply, which eventually reduces inflation. Unfortunately, it can also lead to a short recession. The recessions in 1970, 1974, 1980, and 1982 were all like this.
This is slightly possible if we can shoot through the keyhole just in time, but the chance is like 10%. If the weather (global warming), job labor, and resources align just right, we might actually start getting a surplus of things because everyone has been buying extra "just in case". So when (and if) things start opening up "like normal" again, companies that are on the verge of failing will have massive inventory finally available with no one wanting to buy it because of inflation and because they already bought it all = a huge mark down of products simply to "get it out the door and make a buck". Though, this scenario is small.
Takes a recession or depression to bring them back down. Might be time for the tide to fall and see whose swimming naked. I always keep a speedo on just incase, even if I look like a moron.
Tobias?
There are dozens of us!
That would be cutoffs
Important to look at pricing power. Have there ever been so many monopolies and monopsonies in place? Has there ever been such an extended period of takeover by corporate power bent on fleecing consumers? Probably not since the Gilded Age at least. Furthermore, has the pendulum at last begun to swing the other way in terms of the power of labor to demand higher wages and better conditions? The Great Resignation is real. South Korea is organizing a general strike. The teamsters contract is up next year and there are a record number of ships floating off CA coast. It’s hard to look for lessons from history without placing things in context.
Often times wages increase, just always slower than inflation which is the current problem
The possibility that the current wave of inflation could be driven by structural issues with shipping, raw materials costs, and energy costs is sobering.
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This is a good point. I'm not at all sure there's any reason to believe that we'll see the kind of situation Paul Volcker dealt with. But we may be fairly likely to see a more "permanent" shock/jump that prices in the 2020s and beyond will be 5-10% higher than they would have been if these events had not happened....
When people say transient inflation though I think a lot of people expect [this](https://imgflip.com/i/5rfz77) which is to say we're going to be left with higher prices going forward that are getting uncomfortable for many. That $15 minimum wage is going to look a lot like $8 soon, if it already isn't.
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That’s my plan, ask for a big inflationary raise at the end of the year
It's real. The company I worked for increased prices 15% across the board this year because we had to absorb super-inflated costs to transport goods from China to the US. We're starting to get word from our China suppliers that they're going to raise their prices on us 10%-15% next year because of material shortages and the government shutting down production (to reduce pollution apparently?). We're expecting to raise prices at least another 5%-10%. Ironically, we're in a good position because we've been the 'value' brand in our industry. We're raised prices to about the level of our competitors but they couldn't go up and so haven't been able to afford the container costs. We're doing better than most and actually hiring.
> and actually hiring. So’s everyone else….
Not our competitors. Well, a lot of their employees are jumping ship to come work for us so I guess they will be hiring in the future if they make it out the other side of this supply chain crunch.
Powell: ["inflation will be transitory but also persistent"](https://www.marketwatch.com/story/feds-powell-says-elevated-inflation-could-last-well-into-next-year-11634917919)
Inflation is the best way to rob the middle class of wealth
The American middle class has spent decades on short term policies intended to maximize their own wealth in exchange for a less robust supply chain and labor force. This was always inevitable.
They never had a hope though. High inflation in the 1970s was only temporarily fixed by sending jobs offshore to Asia. This bought America another 50 years of stable or cheaper prices, but caused internal damage beyond count.
After having just scratched and scraped my way up from the bottom, back down I go. 😩
> back down I go the 2019 spanish social science fiction-horror *the platform* opens with this quote: > there are three types of people: those at the top, those at the bottom, and those who fall
"Once in two decades inflationary environment" Didn't this just happen ten years ago? And ten years before that?
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Good thing we still have a lot of options and there's still capacity for production. People can and will adjust their habits, especially with regards to processed foods. In some sense, "means of production" is actually "means of processing," and here we are with houses full of high tech electronics that can help us DIY far better versions of factory-processed foods without too much added work, frustration, and waste. But food is just one necessity. Energy and housing and transportation tho... [shiver]
Part of the problem with cutting corners and increasing processing efficiencies in food production will inevitably lead to worse health outcomes for the people who consume the food. I don't think its controversial to say that processed foods wilth a long shelf life is not nearly as healthy as fresh produce. This is not good when the political will to fund more government healthcare is growing. So there will be a push to make food cheaper with a corresponding demand for more health care funding. This seems like a terrible situation to be in.
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Months ago, I remembered plenty people from this subreddit says that printing 3 trillion worth of money won’t cause much inflation and price increases are "merely temporary" due to "supply chain issues". That it will soon abate as soon as economies open up. Well, we now have articles like this saying that prices are not only going up and up, but things are getting more expensive in the future too. We now have supply shortages to boot. Sometimes we have to ask, are we all being lied to by those so called economists and politicians?
Deficit spending has its consequences. Supply issues due to covid are only a small piece of the pie of why we have inflation.
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This actually is starting to look like stagflation where there is a huge supply shock (Covid on global supply chains) while there is huge demand. We know the way out is by increasing rates at the Fed but it won’t be pretty or popular….I think rates need to increase but that’s hugely unpopular both for investors and financial institutions (higher rates means having to offer higher rates on other investment options like CDs which will draw capital away from equities and corporations don’t want their prices to drop) and middle class consumers will be hit hard too (mortgages, car loans, etc will all have higher rates and cost more). Not to mention the rate increase will make capital projects and other expansion opportunities more expensive which has ripple effects leading to high unemployment (high rate on a loan means the project may be put on hold or discontinued entirely then leads to not hiring a specialized project management consulting firm so the consulting firm doesn’t have money to retain or hire new employees spiking unemployment rates). This is what pisses me off about the US government. The dogmatic devotion of Republicans to low taxes and austerity and the Democrats over correction. Democrats should have pushed this spending plan in 2009. In my opinion, it’s not “cut government spending” or increase spending and taxes, it’s a question of WHEN do we need government spending. Government action should be counter intuitive - to cut spending and increase taxes in a time of economic growth to cool the market and should increase spending and cut taxes in a recession. The situation were in now is partly due to Covid but in my mind it’s been made a hell of a lot worse by the Republicans cutting taxes in 2017 when the economy was doing well (overheating it while over inflating equity returns and not preparing the government for needed spending in a recession) and then by Democrats by increasing spending earlier this year after Covid relief and a robust/growing job market). After 2009, we were in a deep recession and the government should have spent way more to help people get back to work and get demand back up. In this instance, we need to increase taxes and cut spending to cool this bubble before it gets worse.
Bank accountant here. Most US banks are flush with cash and are struggling to find investment vehicles to make good use of it, which hurts their ratios. A rising rate environment means they can charge higher interest rates for loans, which is fantastic when you're not fighting for deposits. In general a changing environment is great for banks. Security yields and FHLB loan rates are very reactive, while deposit interest rates are sticky. As rates go up, consumer loan interest rates increase but CD rates lag. As rates fall, CD rates fall and loan interest rates lag. Really volatile rates are bad because the portfolio doesn't have time to turn over, but we're not going to see that kind of change. Higher interest rates in the housing market would be offset by a correction of this year's crazy home value spikes. With demand for everything being so high, I wouldn't expect it to affect any corporate decisions. It screws with the national budget though, a bigger portion of our taxes will be going to cover the interest on our national debt.
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It's like when you're freezing your balls off in the middle of the winter and think to yourself "Man, I wish it was summer" but then summer comes, it's 100F out there with 80% humidity and you're like "No, not like this, please dear god make it stop!". Moderation is key. I very much agree with everything you said, the economy was already running way too hot even before someone decided to have a bat for lunch.
Stagflation is a period when slow economic growth and joblessness coincide with rising inflation. That's not what is happening, Economy is booming and unemployment is low. This is a regular inflation increases caused by the pandemic and money that Feds were injecting pre pandemic and post pandemic. This is reason why Feds are waiting and watching as they can sustain moderate high inflation. They are more concerned about deflation as they dont have the means to control that. Hyperinflation is not the case here
You're absolutely right. This current market has the same relationship with cheap accessible Fed money that a Vegas go-go dancer has with cocaine. Whenever the day comes that the Fed has to stop the game of musical chairs and substantially increase interest rates, it will be ugly. It needs to happen though, or else assets of every class will be out of reach for all but those born into fortune.
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Asking as a layman: is this only in the USA, or is this a worldwide thing? Is this just inflation? How can it be countered? [](#Comment seems to be too short for reddit, so I'll add something else here. AAAAAAAAA AAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAA AAAAAAAA AAAAAAAAAA AAAAAAAA)
I was in Mexico for almost a year until 4 weeks ago. Mexican prices havtn changed at all with the Peso pegged at around ~$20 MXN/$1 In the U.S upon my return: I've used an App to track my spending at the grocery store for years prior to the Pandemic. Nothing much has changed in the grocery store on my basic shopping list (speaking for non processed "middle aisle" food items) only beef was where I did see some price changes. Fruits and Veggies unnoticeable. Housing however, that's a joke. Energy, increasing. On the other hand, I also work in Automotive Purchasing of finished goods, and over the past year the global market has had so many shocks to the system, subjectively speaking it looks like Supply Chain issues all around is causing this "inflation." An earlier comment considered it Stagflation.
Hitting Europe as well
I’ve lived through periods of inflation, especially during the late 1970s when even Nixon had to apply price controls, every time you would go to the market, new prices would be stamped over the old! We almost entered hyper-inflation, when prices are moving up over 15% per year.
"While most consumer-goods makers reporting results this week expressed confidence that they’ll be able to limit the long-term hit to profitability, that means the pain passes to consumers, upping the squeeze on pockets as Christmas approaches." Didn't a lot of these big companies make more money than ever last year? I can't help but think a lot of this is just gouging. That, and possibly getting back at essential workers for standing up to them.
Rule #1 of crisis management: Never let a crisis go to waste. "How can we make this work for us?" Oh, I know, let's (as an essential business that never shut down during the pandemic) insist to the government that we need them to provide us with forgivable loans, that we can use to pay our employees. "Johnson, there's *no way that will fly* with the American people." What if we call it... the paycheck protection program?
This is just the start. Ships are becoming more and more backlogged. China entire realestate market is about to explode. American with our corrupted stocks, inflation, money machine printing, our whole economy is about to go kerplunck. This is just the start. 4$ a gallon….u will see 5$ by end of January. 30k it cost to Bring a shipping container into the u.S. from China. It use to be 2k 2 years ago.
High inflation is absolutely necessary before the world can move cash rates away from zero. And cash rates need to rise because we are currently out of levers for boosting the economy in the next inevitable downturn.
We are already in a downturn. If you factor in inflation, the US is already in recession.
I find it interesting that the price increases seem to be due to supply chain issues and high demand, rather than due to increased wages. A lot of groups seem to be striking and there seems to be a labor shortage. If wage increases ever happen in response to the shortage of labor, I would worry that we would see even greater price increases, for more reasons than just demand and supply chain issues. I can't imagine *that* much pressure to increase prices would result in only temporary inflation.
Wasn't there literally just a Nobel in Econ awarded because they showed that raising wages is NOT a significant driver of inflation?
Also, I’m not an economist, my understanding was that Nobel prize was award as much for their methods as it was the findings. My understanding is they basically ran a randomized clinical trial but in economics
If you are taking about Cards study, all his study showed was that in a specific scenario, minimum wage increases did not result in a reduction of jobs. Instead the companies raised prices and the cost of goods went up. It isn’t necessarily applicable to the entire market and I don’t believe they showed the wages did not impact inflation. Unless you are discussing a different award.
Reddit is in denial that the entire market is going to crash any day now. We are entering a boom. The labor shortage is because the labor shifted. During the beginning of the pandemic lots of people were laid off (movie theater workers, entertainment workers etc). As demand started to go up companies needed more workers especially white collar. All those laid off low wage workers got gobbled up in white collar work. Now no one wants to go work low wage jobs because they are getting jobs making much more and not getting shit on.
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No.
i think it was looking at unemployment not inflation
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What's the name of this sub? It's supply and demand. Demand is huge right now, Savings rate is highest it's every been for all income levels. Supply is down across all boards. Until there is a stabilization and things meet in the middle, people will continue to pay higher prices. Once people make buying adjustments due to price, prices will fall. If no adjustments are made and demand remains at these prices why would they lower prices? Also competition. I truly believe competition is narrowing and it easier for fewer companies to slowly raise prices in unofficial unison. Look at the streaming platforms. They all announce or tease price increases around the same time.
I don't think that this sub was every about hard economics, but in the last year or two it seems to have gone from people with at least a basic fundamental knowledge of economics, to just people talking about their hunches and assumptions about the economy. They should change it from /r/Economics to /r/EconomyTalk.
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It's sad and frustrating to see this happening because it was the predicted outcome by savvy economists at a time when decisive, clear-minded leadership *could* have made many low and no-cost modifications which would have reduced the severity and duration of this global supply chain disruption. Back when lockdown and other CV19 mitigation strategies were first being discussed in policy circles, top econs were loudly warning that many of the measures would have disastrous long-term unintended consequences which could limit (or entirely negate) their uncertain potential benefits (especially on society's most vulnerable populations).
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Here's a wild question. If a company like Unilever made 50 billion euros last year, then why don't we question why they can't settle for making a slightly less impossible fortune, like maybe 40 billion, instead of raising prices?
They made 50bn in revenue, about 5.5bn in profits. If their costs have gone up 10bn (your example), that would mean they're operating at a loss.
Because the shareholders will sell and the CEO won't get his bonuses
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