4 ms·

This is the sad reality. The associated wage stabilization is going to be necessary for us to control inflation. SWEs probably don't need worry about remaining

This is the sad reality. The associated wage stabilization is going to be necessary for us to control inflation. SWEs probably don't need worry about remaining employed, but the days of salary wars will be over.

alangibson 4y ago
> The associated wage stabilization is going to be necessary for us to control inflation. It won't. Everyone involved in business dealing with physical goods knows it's a supply side problem. Fiscal policy will do little to control inflation at this time. The Fed of course knows this.
- mc32 4y ago
  We're seeing manufacturers tell their suppliers of JIT to hang on to components because they don't need them right now. So I don't think that's accurate everywhere.
- colinmhayes 4y ago
  > Fiscal policy will do little to control inflation at this time The Fed has no control over fiscal policy. You mean monetary?
  - alangibson 4y ago
    Buh, yea. Vacation brain...
- mikem170 4y ago
  How come Switzerland has only 2.5% year-over-year inflation, less than a third of the U.S. rate? Last I checked there seemed to be some correlation between a country's money printing and current inflation rates. That's not to say that a protion of the current inflation rate is not due to supply consitrictions, but I certainly not assume that is the only factor.
  - chickenpotpie 4y ago
    1) prices were already universally high in Switzerland 2) swiss government regulates the price of healthcare 3) Switzerland uses significantly less fossil fuels and aren't as effected by the war in Ukraine 4) Switzerland passed multiple laws over the past few years to reduce the cost of goods, including banning foreign companies from charging Swiss citizens more
    - mywittyname 4y ago
      The Swiss Franc has traditionally been a strong currency. Probably the world's strongest. The CHF has gained steadily on the EUR since the pandemic and is up about 10% since a year ago. That alone is going to offset a lot of the inflation.
      - TMWNN 4y ago
        USD is up 8% versus EUR YTD ($1 = €0.88 then, €0.95 now). US, unlike Europe, does not actually need Russian oil/gas. And yet, US inflation is above the world average (<https://www.barrons.com/articles/inflation-has-become-a-global-problem-where-the-u-s-ranks-51654902581 https://www.barrons.com/articles/inflation-has-become-a-glob...>).
        ajsnigrutin 4y ago
        Both US and EU printed huge amounts of money during the last few years, and the swiss, it seems, didn't.
        andrekandre 4y ago
        probably because they already have a pretty robust social system in place, so it can weather issues like covid and employment issues better
        ajsnigrutin 4y ago
- juve1996 4y ago
  Supply is only a problem when it can't meet demand. If demand drops then supply stops being a problem.
corrral 4y ago
Rising wages are a very small part of cost increases, except for a few things like on-demand quick-response delivery services (food delivery and the like) and even there, fuel costs are a lot of it.

alangibson 4y ago

> The associated wage stabilization is going to be necessary for us to control inflation. It won't. Everyone involved in business dealing with physical goods knows it's a supply side problem. Fiscal policy will do little to control inflation at this time. The Fed of course knows this.

mc32 4y ago
We're seeing manufacturers tell their suppliers of JIT to hang on to components because they don't need them right now. So I don't think that's accurate everywhere.
colinmhayes 4y ago
> Fiscal policy will do little to control inflation at this time The Fed has no control over fiscal policy. You mean monetary?
- alangibson 4y ago
  Buh, yea. Vacation brain...
mikem170 4y ago
How come Switzerland has only 2.5% year-over-year inflation, less than a third of the U.S. rate? Last I checked there seemed to be some correlation between a country's money printing and current inflation rates. That's not to say that a protion of the current inflation rate is not due to supply consitrictions, but I certainly not assume that is the only factor.
- chickenpotpie 4y ago
  1) prices were already universally high in Switzerland 2) swiss government regulates the price of healthcare 3) Switzerland uses significantly less fossil fuels and aren't as effected by the war in Ukraine 4) Switzerland passed multiple laws over the past few years to reduce the cost of goods, including banning foreign companies from charging Swiss citizens more
  - mywittyname 4y ago
    The Swiss Franc has traditionally been a strong currency. Probably the world's strongest. The CHF has gained steadily on the EUR since the pandemic and is up about 10% since a year ago. That alone is going to offset a lot of the inflation.
    - TMWNN 4y ago
      USD is up 8% versus EUR YTD ($1 = €0.88 then, €0.95 now). US, unlike Europe, does not actually need Russian oil/gas. And yet, US inflation is above the world average (<https://www.barrons.com/articles/inflation-has-become-a-global-problem-where-the-u-s-ranks-51654902581 https://www.barrons.com/articles/inflation-has-become-a-glob...>).
      - ajsnigrutin 4y ago
        Both US and EU printed huge amounts of money during the last few years, and the swiss, it seems, didn't.
        andrekandre 4y ago
        probably because they already have a pretty robust social system in place, so it can weather issues like covid and employment issues better
        ajsnigrutin 4y ago
juve1996 4y ago
Supply is only a problem when it can't meet demand. If demand drops then supply stops being a problem.

corrral 4y ago

Rising wages are a very small part of cost increases, except for a few things like on-demand quick-response delivery services (food delivery and the like) and even there, fuel costs are a lot of it.