Schedule 50% more haircuts per day in your hair salons due IT productivity enhancement may help the ladies buy more crap from China, but does it really help the pay of the average worker?
INFLATION--FED announces 0.50% interest rate cut
- Thread starter Chop
- Start date
There is no note for the bottom graph.
No, in many cases the productivity enhancement benefits the company selling the IT system, whose profits go to a small number of owners. Owners then redeploy the profits by starting new companies that hire more workers. Note the money is used to hire more folks and not necessarily to raise wages.
The number of immigrants and women entering the workforce since 1972 has kept wages down.
AC
2,500+ Posts
Monohorns was trying to point out that since 71’ when Nixon took us off the Gold standard. On August 5th. Currency debasement has been parabolic. Money has one value, buying power. You can’t eat or wear money. So buy debasing it’s value. Governments which are 100% controlled by private central banks, can devalue their debt which they printed. The 0.5% Elite who owns real estate and hard assets, get extremely rich. Everyone else pays taxes to……the government! It’s all rigged regardless of your sex OR race!
AC
2,500+ Posts
Land, Real Estate, Fine Art, Classic Cars, Gold, Silver, and Bitcoin are hard assets. Only Bitcoin can be held in your pocket up to ANY value. Thus, if you can afford a 62’ Aston Martin knock yourself out! Otherwise, you better get some Gold, Silver, or Bitcoin. To hedge all this perpetual currency debasement! Bitcoin is very cheap right now. It is set to start moving back up in October.
Now for some positive vibes about inflation:
Why inflation can actually be good for everyday Americans and bad for rich people | CNN Business
Inflation Is Good for You
"Inflation is bad for the 1 percent but helps out almost everyone else."
"Joe--you've got to sell them on the idea that
all this Inflation is actually a good thing..."
Why inflation can actually be good for everyday Americans and bad for rich people | CNN Business
Inflation Is Good for You
"Inflation is bad for the 1 percent but helps out almost everyone else."
"Joe--you've got to sell them on the idea that
all this Inflation is actually a good thing..."
It's good for you to get kicked in the nuts. It improves your pain tolerance.
What a bunch of crap. For everyday Americans to benefit from inflation, wages would have to rise faster than the cost of everyday things that they pay for like housing, energy/fuel, and food. How often does that happen with inflation? Basically never.
But of course, there are winners in inflation. Debtors can be winners if they're not getting robbed on interest and cost of other items. However, the big winners are holders of precious metals, sometimes real estate, and other items whose value isn't very dependent on devalued currency. So when you hang out with poor and working class friends or family members, how many of them talk about their real estate holdings or have gold bars laying around? That's kind of a rich guy thing.
Monahorns
10,000+ Posts
Yes. It helps those hair stylists who are able to perform 50% more haircuts. Or it takes cost out of scheduling so you can spend it on your hair stylists as that improvement is distributed across all hair places and competition raises wages. This phenomenon has been happening for 200 years.
Monahorns
10,000+ Posts
Gains in productivity in a business allow each employee to produce more revenue. That allows businesses to pay them more. It is the story of economic development since the start of the Industrial Revolution. It has literally happened right in front of you. Cost of living increases have outpaced some of the wage increases because government continue to print money.
Wage rates have gone up since then though. Not the same amount in all industries or jobs but they have gone up. Where there is less competition or more training required wages have gone way up. Competition at the low end of the economy will always hurt those wage earners with new applicants. But women have been integrated into the economy for some time now. Any suppression due to their entrance is long gone. And standard of living has still gone up in some ways. Usually areas of life where the government has not interfered.
Monahorns
10,000+ Posts
Now for some positive vibes about inflation:
Why inflation can actually be good for everyday Americans and bad for rich people | CNN Business
Inflation Is Good for You
"Inflation is bad for the 1 percent but helps out almost everyone else."
"Joe--you've got to sell them on the idea that
all this Inflation is actually a good thing..."
The inverse is actually true. CNN like always is lying through their teeth. Who do you think gets handed all those "new" dollars? It ain't janitors.
Profits from productivity enhancements are going to the owners who reinvest in more workers. Wages are flattish because of high immigration rates. If one has extra income to invest in the market, then one can benefit. Otherwise, women and immigrants have eroded your wage, not going off the gold standard.
Monahorns
10,000+ Posts
I was referring to the first graph. Both first and second are showing related trends, so taking out benefits don't explain the break of wages from productivity.
It all gets back to supply and demand. For any locale and job type. If labor supply > labor demand, then wages will stagnate. When labor supply < labor demand, then wages will rise. If you’re an in demand employee, you can command a higher wage.
Even Libs will deep down know this is a crock of crap when they spend $50 for two people to eat Mexican food. Yet somehow they will go right along with it because they actually believe that $1.80gal gas under a different political party was bad.
Another Fed meeting.
Another 0.75 points up to the prime rate.
Meanwhile, Liz Warren was highly critical of the ‘hawkish’ move by the Fed.
Powell said, in the press conference, that the labor market will ultimately benefit from stable prices. For the short term, he’s willing to take whatever pain comes with getting inflation in check.
Another 0.75 points up to the prime rate.
Meanwhile, Liz Warren was highly critical of the ‘hawkish’ move by the Fed.
Powell said, in the press conference, that the labor market will ultimately benefit from stable prices. For the short term, he’s willing to take whatever pain comes with getting inflation in check.
Monahorns
10,000+ Posts
Get ready for the stock market to go to ~50%-75% of where it is currently. But overall this is what is needed.
The correction we're seeing has been due for a long time. I personally don't think it has another 50%-75% to drop beyond where it has already dropped down to. I think that value investors (including lots of big $$$ institutions) will come in and scoop up some value plays with the new lower P/E ratios, providing a zone of support. This could happen either now, or after another 15%-20% or so decline. If the markets drop another 50-75%, you're looking at profitable companies with some insanely low P/E ratios---->the value investors/funds get giddy and go on a feeding frenzy. Also, in times of global uncertainty, foreign money pours into the US markets. As volatile as things are, the US markets are still seen as stable compared to most of the world.
But, I could be wrong...
Boom!
Built in excuse for the Democrats if unemployment goes up.
"It didn't have anything to do with us, it was that mean old Chairman Powell."
Senator Warren Blasts Federal Reserve’s Culture of Corruption, Criticizes Inspector General’s “Credulous” Review of Fed’s Stock Trading Scandal | U.S. Senator Elizabeth Warren of Massachusetts
Liz Warren could be onto something with this part:
"In September, 2021, the Fed became embroiled in scandal amid reports that two Federal Reserve Bank Presidents – both of whom have since stepped aside – had actively traded individual stocks and other financial assets while helping set key Fed policies at the height of the pandemic. Last month, the Inspector General (IG) released an investigation finding that former Vice Chair Clarida’s omitted disclosures and that trades involving Chair Powell’s accounts were made during what should have been a “blackout period.” The IG found clear evidence of improper trading activity by these officials, and yet it accepted uncritically the claims that these improprieties were inadvertent. The investigation, conducted by an IG that serves at Chair Powell’s discretion, was entirely inadequate, underscoring the need for the Fed to provide full and complete information about Fed officials’ trades during the pandemic to Congress and the public."
Liz Warren could be onto something with this part:
"In September, 2021, the Fed became embroiled in scandal amid reports that two Federal Reserve Bank Presidents – both of whom have since stepped aside – had actively traded individual stocks and other financial assets while helping set key Fed policies at the height of the pandemic. Last month, the Inspector General (IG) released an investigation finding that former Vice Chair Clarida’s omitted disclosures and that trades involving Chair Powell’s accounts were made during what should have been a “blackout period.” The IG found clear evidence of improper trading activity by these officials, and yet it accepted uncritically the claims that these improprieties were inadvertent. The investigation, conducted by an IG that serves at Chair Powell’s discretion, was entirely inadequate, underscoring the need for the Fed to provide full and complete information about Fed officials’ trades during the pandemic to Congress and the public."
Monahorns
10,000+ Posts
I meant 25%-50% drop but no one really knows. Some experts say less and some say more. I agree Value funds and commodities are poised for increases.
Monahorns
10,000+ Posts
The Fed Chairs don't do anything without the approval of the President's administration.
Wells Fargo expects steeper U.S. rate hikes to quell rampant inflation
There you have it folks!
You see, the Fed works...
There you have it folks!
You see, the Fed works...
Monahorns
10,000+ Posts
Government creates a humanitarian crisis, then does thing to undo crisis.
Thank god the government was there or what would have befallen us!
Just in case you thought this inflation problem was going away soon...
https://www.cnbc.com/2022/09/27/nea...oking-for-extra-work-to-combat-inflation.html
https://www.nytimes.com/2022/09/27/business/economy/landlords-rent-inflation.html
"Things look very different, however, for Neal Verma, whose company manages 6,000 apartments in the Houston area.
Earlier this year, Mr. Verma experimented with raising rents enough to cover the cost of spiking wages, property taxes, insurance and maintenance. Turnover doubled in the properties where he tried it, as people left for nearby buildings.
“It’s crushing our margins,” Mr. Verma said. “Our profits from last year have evaporated, and we’re running at break-even at a number of properties. There’s some people who think landlords must be making money. No. We’veonly gone up 12 to 14 percent, and our expenses have gone up 30 percent.”
https://www.cnbc.com/2022/09/27/nea...oking-for-extra-work-to-combat-inflation.html
https://www.nytimes.com/2022/09/27/business/economy/landlords-rent-inflation.html
"Things look very different, however, for Neal Verma, whose company manages 6,000 apartments in the Houston area.
Earlier this year, Mr. Verma experimented with raising rents enough to cover the cost of spiking wages, property taxes, insurance and maintenance. Turnover doubled in the properties where he tried it, as people left for nearby buildings.
“It’s crushing our margins,” Mr. Verma said. “Our profits from last year have evaporated, and we’re running at break-even at a number of properties. There’s some people who think landlords must be making money. No. We’veonly gone up 12 to 14 percent, and our expenses have gone up 30 percent.”
Uh, oh....
Per Bernie, It's always those blood sucking greedy landlords:
Bernie Sanders Backs Rent Control, Slams Greedy Landlords in New ‘Yes on 21’ Spot
- Expand rent control to more buildings while exempting newly constructed buildings.
- Exempt Single-Family homeowners who own up to two homes.
- Allow limits on rent increases when a new renter moves in.
No repairs to rental housing.
No new housing built.
No new electric generation plants.
.......................................Chop
Stock market news live updates: Stock sell-off intensifies after relief rally fades; Dow sheds 500 points, Nasdaq falls 3%
Inflation cuts into the sales of big ticket items:
Elsewhere in corporate news, CarMax (KMX) shares tumbled nearly 34%
after the vehicle buyer reported second quarter earnings that missed Wall Street estimates, citing "affordability challenges" that weighed on sales.
Inflation cuts into the sales of big ticket items:
Elsewhere in corporate news, CarMax (KMX) shares tumbled nearly 34%
after the vehicle buyer reported second quarter earnings that missed Wall Street estimates, citing "affordability challenges" that weighed on sales.Bed Bath & Beyond (BBBY) fell 8% on Thursday after the company posted a wider quarterly loss as persistent merchandising and inventory snafus and inflationary pressures hit the home goods retailer.
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