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It's because the tech economy is a new pathway for money to flow. The wage inflation spiral that terrifies economists is where current jobs start paying more wh
by badcppdev 3y ago
It's because the tech economy is a new pathway for money to flow. The wage inflation spiral that terrifies economists is where current jobs start paying more which leads to inflation in prices for goods and services which leads to the requirement for higher wages... I think that's the theory of the wage spiral.
So OPs theory is that the government can print money, boost GDP, and pay out profits to the owners/shareholders but not trigger the inflation... until now
- yterdy 3y agoCorrect. The people we're talking about - Ivy League alums, the children of professionals, immigrants, and people who want to be like them - are much likelier than the average American to drive their wealth into assets and savings. Housing prices, stock prices, retirement portfolios would balloon, not (for the most part) the prices of everyday goods. Which is what happened; the wage-price spiral that we did see was largely localized to Silicon Valley/San Francisco (and, to a lesser extent, a few big cities). Until the Sept. '19 repo crisis and then the pandemic, of course.