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This is the mystery, precisely why I wanted to ask the question. Some of it is due to asset prices going through the roof (real estate in some western countries
by ak_111 4y ago
This is the mystery, precisely why I wanted to ask the question. Some of it is due to asset prices going through the roof (real estate in some western countries have doubled over the last 3 years).
But this can't be the sole reason. For one thing it is hard to monetise asset prices to get cashflow. But the truth is it is one gigantic puzzle in the macro economics world and you just have to read some central banker transcripts to see how perplexed they are by the entire thing.
- ChicagoBoy11 4y agoUsually the whole science of econ is predicated on trying to keep preferences fixed and then seeing how all sorts of shocks impact behavior. But, perhaps, COULD IT just be that this one time, with this once-in-many generational event, that people's outlook and perspective on their lives truly did change and preferences, all else equal, did in fact shift massively so people have been quitting/making less money/changing jobs?
- robertlagrant 4y agoIt could be, assuming the country is so wealthy that it can feed and house lots of people working less. But we are yet to pay back all the money spent on Covid, so it would be very surprising if this state of affairs remains.
- ak_111 4y agoIt could be, but this would be an extraordinary claim requiring extraordinary evidence. A huge chunk of society suddenly changing their outlook on wealth and work-life balance and then committing to a radical new lifestyle as a result would be a major deal, like a country embracing a new religion.