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The factory building and infrastructure spending passed over the last two years is one of the reasons why the labor market has remained steady despite a higher
by laidoffamazon 3y ago
The factory building and infrastructure spending passed over the last two years is one of the reasons why the labor market has remained steady despite a higher federal funds rate.
- dpflan 3y agoWhat’re you saying is the precise implication here?
- laidoffamazon 3y agoKeynesianism has a lot of juice left in it and the IRA, CHIPS, and infrastructure bills are creating a manufacturing boom. There are more manufacturing jobs now than there were before the pandemic.
- dpflan 3y agoYes. Are you saying that because there is demand for manufacturing jobs, wages for such jobs are higher, and that inflation should remain higher but unexpectedly is not?
- laidoffamazon 3y agoIncreased interest rates are decreasing inflation by reducing economic activity but it's being countered by increased spending in green and semiconductor sectors. It nets out to a positive.
- dpflan 3y agoThank you for clarifying. Agreed. In the end it’s all a game of routing dollars around. It must be a crazy max flow problem.