3 ms·
Yes, but wages are "sticky" and lag in the rise. Statistically, it should work out fine. As a curious tangent, I've been reading that we will be entering stag
by psychlops 5y ago
Yes, but wages are "sticky" and lag in the rise. Statistically, it should work out fine. As a curious tangent, I've been reading that we will be entering stagflation soon as we continue with inflation and as people re-enter the workforce en masse wages will be driven down.
Devaluing the debt definitely helps, but I think you noted before that that wealth is largely inaccessible.
- imtringued 5y ago>I've been reading that we will be entering stagflation soon No, we have stagflation right now. Stagflation is generally the type of inflation where production cannot follow demand. This is generally caused by supply shocks and sometimes by legislation that prevents people from working. The semiconductor shortage is causing a lack of new cars and thereby an increase in used car prices is an example of stagflation because prices go up but nobody is employed in the process to produce more cars. However, this stagflation is unlikely to last because those car CEOs sure as hell don't want their company to go bankrupt. They'll pay more for preferential access to semiconductors and make their JIT manufacturing more resilient.