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The Fed won't stop until they break the back of the labor market and unionization movements. The only lever they really have to pull to get wages until control
by lamontcg 4y ago
The Fed won't stop until they break the back of the labor market and unionization movements. The only lever they really have to pull to get wages until control is driving the economy into an iceberg. An actual NBER-approved recession is coming fairly soon (2023/2024) and something will blow up in the broader economy (CMBS?) and will be much worse than current economic conditions.
- dragonwriter 4y ago> The Fed won't stop until they break the back of the labor market and unionization movements That's not the Fed’s goal. Yes, tight monetary policy generally weakens labor leverage, but the target is inflation. If inflation comes down and unionization continues (which is not implausible, if non-labor price drivers like oil keep dropping), the Fed will almost certainly back of the brake lever notwithstanding the continued labor organizing drives.
- lamontcg 4y agoI think it is more than a bit simplistic to assume workers are demanding higher wages just because oil spiked a bit. And I just don't have the time right now to try to convince anyone that the Fed's numbers and targets actually bake in class warfare without saying the quiet part out loud.
- dragonwriter 4y ago> I think it is more than a bit simplistic to assume workers are demanding higher wages just because oil spiked a bit. It would be, but I didn't even approximately do that. In fact, what I said depends on pretty much the opposite, the two being largely independent of each other.