Remember, the Fed Chairman and a former Treasury Secretary have both come out in favor of reducing the availability of employment offers in order to knock down inflation, which likely means they'll be so focused on chopping down employment in order to deal with inflation (partly caused by Fed and Treasury policies, and partly caused by continuing supply shortages) that they are most likely to miss the economy's turning point and cause a deep and long contraction.
> Former U.S. Treasury Secretary Larry Summers says there needs to be a surge in unemployment to curb inflation > According to Bloomberg News, Summers said in a speech on Monday from London that there needs to be a lasting period of higher unemployment to contain inflation — a one-year spike to 10%, two years of 7.5% unemployment or five years of 6% unemployment. With idiots like this, I'm surprised that we're not in the midst of a very bloody Marxo-communist revolution.
Say it with me: The current price inflation surge is not because too many common people are making too much money. It is because of corporate mismanagement (relying on imports and just-in-time inventories & production) causing shortages. And because the Fed and Treasury pumped trillions of dollars into the economy while these shortages continued.
Focusing on the wrong cause just means that the Treasury and the Federal Reserve together will cause a very deep recession or even a depression because they will miss the turning point.
With all the data that our economic leadership has, why are they missing things that a basic high school econ course would have taught them?
I think Powell's misanalysis of the causes of the current inflation spike may very likely cause the Federal Reserve's #FOMC (Federal Open Market Committee) to raise rates too much and too late, tipping the economy into recession.
This guy next to me is listening to a #Trump interview about #RU_vs_UA and the economy.
I know that Trump produced better economic !econusa results for Black and Hispanic Americans than any previous president, but I think it was mostly accidental. I don't pretend that putting him back in office would produce similar results.
I am really not used to hearing this sort of stuff at work. These last few days in #NYC could get a little rough.
And please, please, #twin_parties, let us not have a rematch of the 2016 election. Let both of those candidates go home and walk on the beach, pondering where they went wrong.
@clacke Smaller studies in localized areas suggest the same thing.
Also anecdotes, such as the shopping mall that overlapped two cities' mutual boundary. When one city raised its minwage, shops in their side of the mall were besieged with applications from people working in the other side. Some employers on the low-wage side ended up matching the high-wage side's pay scale in order to keep employees.
And this was before coronavirus, so government unemployment subsidies were not the cause. !econusa
I also remember the concerns that it was easier to make money by being a financier than by making and selling things ... which is not a good thing by any means.
Leaders of over 100 nations agree to 15% minimum corporate tax rate, some limits on profit-shifting.
Just from what I read in the article, I'm convinced the rate is too low, and that the pact will fail to produce the desired results. Specifically, I believe corporate taxes should be on a unary system (allocated by where the related activities take place). So if #Apple makes most of its profit by selling iDevices in the USA, regardless of its profit-shifting techniques, taxation belongs here.
US Census Bureau: Celebrate "Manufacturing Day":{https://www.census.gov/mfgday} ... this page links major census numbers about manufacturing and its impact on the economy.
Obviously, there is a point where the combination of the Fed's policies and Congress's borrow-and-spend policies will trigger inflationary price increases. No one knows for certain where that point is, but the Fed's operative assumption is based on doubling the money supply in one year during the 2008-2011 recession without any perceptible impact on prices.