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>wages started to rise I think everything you said made sense. But just to balance it out, there was a recent Planet Money podcast that explained that wage inf
by bumby 4y ago
>wages started to rise
I think everything you said made sense. But just to balance it out, there was a recent Planet Money podcast that explained that wage inflation is not the primary cause and that 55% of inflation is attributed to increased profit margin. The rebuttal from another Econ is this is just temporary anomaly and we’ll see wages rise to erode those profits.
- pas 4y agowages will definitely (okay, very very likely) rise, because there is just such a huge gap in jobs and workers. graph here: https://twitter.com/jasonfurman/status/1598042298717155329 https://twitter.com/jasonfurman/status/1598042298717155329 https://www.federalreserve.gov/newsevents/speech/powell20221130a.htm https://www.federalreserve.gov/newsevents/speech/powell20221...
- bumby 4y agoI think the larger point I was getting at is that current inflation may not be attributed to wage inflation. I’m not discounting that future inflation may come from increased wages, just that it doesn’t seem to be the whole story in the current scenario.