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Hyperinflation requires a feedback loop through workers, and I see no evidence that most US workers have enough bargaining power to demand higher wages to match

by michael1999 6y ago

Hyperinflation requires a feedback loop through workers, and I see no evidence that most US workers have enough bargaining power to demand higher wages to match. I expect further asset inflation and a continued “k” shaped divergence.

silexia 6y ago
Seeking Alpha is a site with the worst usage of dark patterns I have seen on the internet, both in it's website design and in it's actual content. This article actually misses a lot of key macro points like that the Fed stopped expanding mzm months ago, and that the expansion of money supply has to reach consumers to become inflationary.
- woofie11 6y ago
  A genuine expansion of the money supply might take time to reach consumers, but it WILL reach consumers. Thought experiment. A crisis, COVID2029, puts everyone out of work for a year: 1) I print 9 trillion dollars, and allow 300 million recently-unemployed Americans to pay their mortgages during a global crisis. Crisis ends, and everyone goes back to work with 9 trillion new dollars printed. During the crisis, everyone gets a bag of cash, but there's no inflation. Crisis ends. Boom. As soon as everyone's back at work, the inflation kicks in, since there's 9 trillion dollars of new currency in play. 2) I issue zero-interest loans to 300 million recently-unemployed Americans, allowing them to push back their mortgages by one year. I've injected 9 trillion dollars into the economy, but I naturally suck it back out after the crisis. No inflation.
floor2 6y ago
20 years ago a "six figure salary" meant you were rich, and was exclusively the domain of corporate executives, wall street traders, doctors and lawyers. 10 years ago a "six figure salary" included developers at FAANG companies, mid-level managers and late-career roles in more industries, highly-tenured individuals in government roles. Today, a "six figure salary" qualifies you for low-income housing in the bay area and is paid as entry-level or mid-career salary to an incredibly wide range of jobs.
- jdashg 6y ago
  Six figures is only low income for certain areas (not the whole bay area), and only for households with enough children. For households, two 50k parents is an easy 100k. I do not believe six figures entry level jobs are common outside the highly trained professional fields, but I don't have data on hand for it.

silexia 6y ago

Seeking Alpha is a site with the worst usage of dark patterns I have seen on the internet, both in it's website design and in it's actual content. This article actually misses a lot of key macro points like that the Fed stopped expanding mzm months ago, and that the expansion of money supply has to reach consumers to become inflationary.

woofie11 6y ago
A genuine expansion of the money supply might take time to reach consumers, but it WILL reach consumers. Thought experiment. A crisis, COVID2029, puts everyone out of work for a year: 1) I print 9 trillion dollars, and allow 300 million recently-unemployed Americans to pay their mortgages during a global crisis. Crisis ends, and everyone goes back to work with 9 trillion new dollars printed. During the crisis, everyone gets a bag of cash, but there's no inflation. Crisis ends. Boom. As soon as everyone's back at work, the inflation kicks in, since there's 9 trillion dollars of new currency in play. 2) I issue zero-interest loans to 300 million recently-unemployed Americans, allowing them to push back their mortgages by one year. I've injected 9 trillion dollars into the economy, but I naturally suck it back out after the crisis. No inflation.

floor2 6y ago

20 years ago a "six figure salary" meant you were rich, and was exclusively the domain of corporate executives, wall street traders, doctors and lawyers. 10 years ago a "six figure salary" included developers at FAANG companies, mid-level managers and late-career roles in more industries, highly-tenured individuals in government roles. Today, a "six figure salary" qualifies you for low-income housing in the bay area and is paid as entry-level or mid-career salary to an incredibly wide range of jobs.

jdashg 6y ago
Six figures is only low income for certain areas (not the whole bay area), and only for households with enough children. For households, two 50k parents is an easy 100k. I do not believe six figures entry level jobs are common outside the highly trained professional fields, but I don't have data on hand for it.