Uncomfortable inflation is here, and it’s changing the economy

https://www.washingtonpost.com/business/2021/10/15/us-economy-inflation-uncomfortable/

HYPERLINK has full story

snip

Workers are demanding pay increases because they can see their wages aren’t buying as much with so many everyday necessities costing more, including rent. That leads companies to hike prices more, then workers turn around and demand another pay raise. Economists call this phenomenon a “wage-price spiral.”........................

“During the past five months consumers have become much more concerned about rising inflation and slower wage growth and their negative impact on their living standards,” the University of Michigan Surveys of Consumers said when releasing its September data. And this week, the New York Fed’s consumer survey showed Americans now predict 4 percent inflation for the next year and 3.4 percent for the next three years — the highest levels since the survey began in 2013.

end snip

interesting

the analysis article calls out 2 important points

1: wage increases simply drive up the cost-of-goods and causes more inflation. Jobs only have certain market value depending upon the function of each job

2: The folks are now very concerned about inflation and perhaps realize that it is not temporary. We no longer hear the Democrat administration refer to it as "transitory"
I believe they found that the term went over like a lead balloon.


Here in the USA there are things that can be done to improve the folks stock in life. Killing any tax increase and bloated govt spending would be an excellent start

then, returning back to sound, fiscally responsible energy policies would help tremendously

This is the price we now pay for no more mean tweets. I wonder if even any Democrat voters are now reconsidering what they have done by voting Democrat.


Democrat votes have consequences; always negative

 

On my little patch of ground the "Now Hiring" signs everywhere are morphing into "Now Hiring MINORS"....businesses are reduced to begging children to apply since the "adults" won't get off their asses....bodes well, doesn't it?

 

once you give free stuff to people, most want it forever.

 

what caused inflation, Trump cutting the supply of fuel last year....

"Trump told Saudi: Cut oil supply or lose U.S. military support"

https://www.reuters.com/article/us-...se-u-s-military-support-sources-idUSKBN22C1V4

"Trump threatens 'very substantial' tariffs on imported oil if Saudi Arabia and Russia can't reach a deal to push prices back up"

https://www.insider.com/trump-threatens-saudi-arabia-russia-oil-tariffs-2020-4

 

once you give cheap labor to the rich, some want it forever

 

So breakdowns in the supply chain had nothing to do with it, nor the lockdowns and labor supply issues.... you can do better than this.

 

they did, many things played into it

the right trying to blame it all on higher wages is incorrect, that is the point

 

I don't recall anyone blaming just on higher wages.

 

the right seems to be saying that, the fact is, the min wage needs to be raised to keep up with inflation

 

Back to something I've posted, time and again. the actual 'minimum wage earner' is less than 2% of the workforce. The demographics have the majority under the age of 25, and over 75% of that group remain at minimum wage less than 90 days.

So why would increasing that wage, generally benefit the minimum wage earner after the initial term of their employment? What does it do the wages of every employee above that line, who have done something to improve their position based on merit? And, the new wage base is still just that, bottom of the ladder, which will still only purchase what their previous wages purchased.

IMO, increasing minimum wage is a feel good plan that doesn't provide any true value to the employee other than a very temporary increase in purchasing power that dissipates quickly as prices rise.

 

then raising the min wage is a non-issue, so just raise it then

 

Non-issue? So what do you do with the people who earned their raises, above the existing MW and the supposed new MW? Tell them tough nuts?

 

give them a raise

 

Nothing will bail anyone out. Prices rise ahead of inflation, and companies profits come after sales, so it is going to be awhile until equilibrium is reached. The wild card is the Biden admin generously providing cheap labor to keep downward pressure on wages.

 

And what happens to prices of the product if you 'give them a raise' all the way up the levels?

 

not much, a few pennies more if the corp was not already gouging the consumer

the biggest cost to consumer price is ceo salaries and other rich people getting their cut

 

So the small business owner, of which represents the majority of businesses, is 'gouging the customer, when their bottom line shows a profit of 10%?

'A few pennies'. Have you done the math? Added in to the additional increase of cost per hour wage, the additional taxes the employer pays, the premiums of the workers comp insurance? The additional amounts paid to the State for UI?

Small Business & Entrepreneurship Council (sbecouncil.org)

Those over-bloated CEOs carry no responsibility, no involvement in the businesses they oversee (sarcasm included), but you are jealous of what they earned, without knowing their responsibilities....

 

Trump caused today's inflation? LOLOL... Trump had us "energy independent". Some folks will blame Trump for sunspots and their coffee being too hot. Amazing.

 

Trump reduced oil supply last year, that is now effecting us as demand increases

it will take a bit for supply to increase now, Trump should have kept his grubby hands out of it

 

if they can't afford more, they will give them the min wage

your saying business have to pay people less than the new min wage? you said that was only 2%

lets stop giving welfare to the working poor and give it to small businesses for higher wages, cause that is what welfare does, it pays for cheaper labor, let's be honest why welfare exists

then the right can attack the welfare businesses

 

Trump had us "energy independent". Now, with Biden, we pay what we are told to pay by OPEC once again.

 

How do the afford the 'new' minimum wage? They raise their prices. So, back to the original discussion....

If someone has earned a raise, and the 'new' minimum wage is higher than what they are earning, then they should be increased also. And the next level up would need to be increased... etc. So, the increase of MW doesn't 'just' affect those earning it.

Without additional production, and increase is a temporary rise in purchasing power, and still leaves them on the bottom rung of the wage ladder.

 

how does socity survive of people can't support themselves

your arguments have been used everytime the min wage rise in history, and we always survive just fine

 

Trump cut the supply of cheap foreign oil, we still have enough to supply ourselves, in fact much is being exported, it just cost more as Trump cut the supply of cheap foreign oil

 

Uhmm... if you haven't noticed, gas is up about a dollar nationally under Biden.