08-09-2023, 12:34 AM
(08-08-2023, 08:21 PM)treee Wrote: Pretty sure that most modern economists agree that wage-price spiral is not as significant contributor to inflation of as previously thought. That's not to say that it doesn't contribute, because it does, but that other factors like money velocity are a much larger contributor. In economies like ours where credit drives the economy, the availability of credit will do far more to spur or reduce inflation than wage growth.
Also, productivity has outpaced wage gains for decades now. It is quite possible that what we are experiencing is the movement of the value of labor towards it's natural state when wage suppressing market factors and policy are shifted and/or removed.
That is why I'm referencing labor union productivity numbers. Also, this is a canary in a coal mine indicator; Trump won in 2016 b/c many of the labor unions felt Hillary left them in favor of NAFTA and the TransPacific trade agreement and their jobs were being outsourced. Bernie had union support but when the DNC nominated Hillary many voted for Trump or didn't vote at all, and that's one of the big reasons why Trump won in 2016.
Basballguy- Meaning by those wage growth numbers, Wages outpaced inflation by 1.2%, and there isn't one economist who thinks that's a bad thing. https://www.nbcnews.com/business/economy/americans-are-finally-getting-raise-thanks-lower-inflation-rcna93844
If the labor union members are happy and working hard, this will hands down equal a Biden win.
