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Anyone else notice Powell mentioned multiple times that they're trying to weaken the labor market? (and by extension the ability of workers to negotiate good wa
by maerF0x0 4y ago
Anyone else notice Powell mentioned multiple times that they're trying to weaken the labor market? (and by extension the ability of workers to negotiate good wages, good conditions)
Anyone know why?
- majormunky 4y agoWorkers making good wages increases demand on goods that are already in high demand.
- maerF0x0 4y ago> Workers making good wages Wouldn't that be a baseline value of a society? It makes me think that the price increases that are happening is simply a return to norms after we had like 50yrs of productivity increases w/o increasing wages -- meaning prices were actually suppressed.
- stjohnswarts 4y agoI don't think that's the way it works in capitalism, unless it's part of the government's goals. Right now it isn't. The goal is to stop inflation, not make your or my life better. That was never the role of the Fed, that is for the legislature to decide with policy
- jazzkingrt 4y agoOne reason is that inflation has a lot of inertia, because inflationary expectations drive more inflation. A strong labor market drives up wages. When not matched by GDP growth, those wages increase costs, which cause workers to demand higher wages to keep up with those costs, and so on. The cycle needs to be broken even if there is short term pain for workers.
- maerF0x0 4y agoBut what about the decades of wages not keeping up with productivity (proxy for GDP Growth)? Could this simply be seen as workers finally getting their due?