3 ms·
Archive link: https://archive.is/sNzmW https://archive.is/sNzmW The "nightmare scenario" of a full employment recession is that their idea of controlling infla
by ebiester 3y ago
Archive link: https://archive.is/sNzmW https://archive.is/sNzmW
The "nightmare scenario" of a full employment recession is that their idea of controlling inflation is to reduce the number of people working, because the fed will keep the monetary policy restrictive until the unemployment rate increases. This speaks to a poor return in the stock market rather than the actual suffering that happens for the bottom 50% of the population.
It's not great for my visions of retiring early, but at some point the stagnant labor force has to be taken into account. between '16 and '19 had a 2.7% increase in the labor force - between '19 and '22 is nearly flat. (see https://www.statista.com/statistics/191750/civilian-labor-force-in-the-us-since-1990/ https://www.statista.com/statistics/191750/civilian-labor-fo... )
We had a fair bit of early retirement. When we are talking about the number of the expectations of population growth against the reality, 2.65% is enough to distort the labor market.
- JohnFen 3y agoYes, that piece is written for the Wall Street crowd. To them, any time that ordinary people are given even a little bit of badly needed leverage, it's a nightmare scenario.