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This is absolutely being orchestrated, right out in the open. OP’s entire post is fundamentally about the balance of power between labor and capital. The Fed’s
by dougmwne 3y ago
This is absolutely being orchestrated, right out in the open. OP’s entire post is fundamentally about the balance of power between labor and capital. The Fed’s stated goal is to cool the labor market so that wage growth will calm down. In other words, the Fed thinks labor is too strong, calls too many of the shots in negotiations and so wants employees to be more desperate so that their employers will have the upper hand.
- lotsofpulp 3y agoNote that this also aligns with incentives of the largest voting bloc, retirees and near retirees.
- closeparen 3y agoObviously capital would prefer to pay lower wages, all else being equal, and in this case the Fed backs them up on that to prevent a wage-price spiral. What’s less obvious is how to keep even very-highly-paid employees from deciding they’ve made enough and checking out.