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In the USA poverty is fairly significant. Those living just above that line, also very significant. To that add those in the "paycheque to paycheque" category.
by chiefalchemist 5y ago
In the USA poverty is fairly significant. Those living just above that line, also very significant. To that add those in the "paycheque to paycheque" category. That's bad enough.
Now to that add (coming up on) 2 yrs of Covid terror and even a small price increases, in the context of no clear vision of better days ahead, and the result is plenty of stress and suffering.
Logically, you're correct. Emotionally, it's a different story for plenty of those in the USA.
- emodendroket 5y agoSurely slamming the brakes on the economy so that we can reduce inflation is going to hit those people worse.
- leppr 5y agoBecause poor people have their networth in assets? No, the lower class depends on salary from employment, which hasn't recovered[1]. What the Fed interventions did to the economy is inflate assets, that's it. Real GDP, productivity and employment have declined. "Slamming the brakes on the economy" i.e. raising rates would allow the stock market and other asset markets to deflate, which would proportionally affect the upper classes more. Lower classes would enjoy reduced food, gas and rent prices, while not seeing meaningful net worth reduction. Of course this is precisely the reason this won't happen. Nobody whose voice matters benefit from the inequality gap being reduced to pre-QE levels. [1]: https://tradingeconomics.com/united-states/employment-rate https://tradingeconomics.com/united-states/employment-rate
- emodendroket 5y agoPoor people are dependent on wages, which would go away if people started getting laid off.