Oso planning to go pro
No, it won't.
Please show your work and math
I hope we all know I'm not an Econ expert. But, my first read of that comment was in regards to people having more money, means more spending, which means more inflationary pressure. That is a fallacy in the current economy. It suggests that demand is driving inflation, or will drive inflation. It is not. The problem is supply right now (from a overly simplified view). So the people having more money will not impact existing inflationary pressures. Further, those who would be getting paid more, are over leveraged right now. Being paid more wouldn't lead to more spending, it would be more likely to lead to paying off debts. Now, I didn't immediately read this from the standpoint of paying higher wages, leading to higher expenses, and then higher prices. While that is a possibility, the reality is that there are ways to relieve those industry budgetary constraints separate from price increases, they just don't like to go those routes.
I didn't say that increasing people's wages are the only reason, or even the main reason for current inflation. But paying people more is going to increase inflationary pressure. I don't think there is much dispute about that.
Why aren't things more expensive at Costco, than Walmart? The idea that if you pay people more, it means prices go up, isn't guaranteed, it is a convenient oversimplification of business operations.
forgetfulThere is a reason employers want to pay the least amount of possible to employees, it is because it is very hard to lower them. It is virtually impossible to put the Genie back in the bottle and there is nothing positive going to happen from higher wages. I guess replacing people with robots will reverse the wage trend, but that is another discussion.
jesmuThe lower paid employees are getting more money, but it is not going to keep pace with inflation. I have zero problem with what someone gets paid as long as intelligent spending. IMO the minimum wage worker will be worse off in a year from now even with higher wages.
I seldom agree with Fluff, but I know three people that have "retired" in the last six months and all are under 60. None of them are crazy wealthy, but the stock market rise over past 18 months made them feel comfortable to retire. I think they are crazy, but the wealth factor is in full glory at the moment.
Yeah reentering the workforce at the same level is tough if you find out you don't have enough to live 30+ years.
https://www.cnn.com/2021/12/18/business/labor-shortage-boomers-millennials-nightcap/index.html
Yes, this has become the accepted explanation among economists, and the facts show why. Many of my fellow Boomers don't want to admit it because it's much easier to shake a fist at Those Damn Millennials getting fat on government handouts.
What is the marketimpact of the boomer retirement surge? Presumably it is largely due to the run ups in the market, which gives these semi-early retirees confidence that they have enough. But does that mean they'll be backing off their equities? If so, when does the market feel that pullback? Where do the retirees go with their money with the bond market mostly still in the tank?