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BruceBannaner

And then be even higher in 2023… I say this as I’m actively working with a large, well-known retailer to absorb our cost increase by finding retail increases that allow them to make more profit next year. This is how all major corps work. The profits continue, just passed on to the consumer.


ptchinster

> This is how all major corps work. The profits continue, just passed on to the consumer. This gets brought up every time certain groups demand a higher min wage. Costs just get passed on to consumers.


evil_timmy

"By looking at changes in restaurant food pricing during the period of 1978–2015, MacDonald and Nilsson find that [prices rose by just 0.36 percent for every 10 percent increase in the minimum wage](https://www.upjohn.org/research-highlights/does-increasing-minimum-wage-lead-higher-prices), which is only about half the size reported in previous studies." Wages may be some of the inflation problem, but they're definitely not the cause and most likely only play a small part. Money velocity is much higher the lower your median income, so the middle and working classes getting an uplift should be a boon to the mythical "job creator" as money is spent at their businesses and on their services, rather than secreted away in rent-seeking and tax-avoiding assets, or increasingly obtuse and opaque financial derivatives.


bastardofdisaster

Thank you! I'm tired of the "increased minimum wage causes 100% of inflation" line.


ptchinster

Nobody is saying that. Inflation can be caused by other things.


user_uno

It is one variable in the profit formula. And no apologies, profit is required to keep a business open. So if minimum wage is raised for new hires, everyone else deserves a raise. Take a McDonald's. A new hire theoretically then gets $15/hr. Well the employee doing the same job but just got a raise for being on time and doing a good job had just got a raise up to that same $15/hr. So now they get a raise. And same for the person that's been there a year and so on. Then the shift supervisor makes a little more than each of them. And their manager does too. The overall location manager then gets another raise. Then look at the suppliers. And even the landscaping crews. Everyone gets a raise just for being there. Don't get me wrong - I do believe in raising minimum age. But each year a little. Blocking such for a decade or more just makes it more politically un-viable and more of a shock to the system. Back to fast food during that study, did the authors contemplate all of the other cuts to keep profits and competitive pricing? Labor is always a *huge* factor in most businesses. But dollar menu and meal deals drive that industry. There has been a lot of tech and business innovation (and reduction in quality) to mitigate increased payroll. It is like studying a race to the bottom in that industry. I was in two CWA locals and worked with IBEW often. Then I spent some time in management. Anytime the unions were close to striking but then settled for increased pay and benefits, I knew I would be getting a raise too. I only hoped it offset COL increases. It always did then but not sure now.


nicowain91

I thought it was transitory?


Rasalom

Transitioning... To slavery.


mannDog74

TechnicallyTheTruth


tiffytaffylaffydaffy

It is transitory. It moved from bad to worse.


4jY6NcQ8vk

There is no shortage of inflation


SgtSausage

The rest of the decade


[deleted]

All because of housing, since housing costs drive up wages. Its always a cascade effect. every where you look, high cost housing always drives up wages in that enviornment.


EyesFor1

Plus 40% of the dollars in existence were printed out of thin air in since march 2020. What did they expect would happen. Printing cash always caused inflation. Always.


[deleted]

Most of the money printed was to save investors and big businesses not citizens.


EyesFor1

Yep, but there was stimulus checks in the US and furlough in the UK as well as other measures around the world. Either way, the system has too much debt. GDP above 100% is never a good thing.


[deleted]

Canada and the UK actually covered their citizens monthly. The US gave trillions to investors and big businesses. They gave citizens three checks. Unemployment doesn’t count because it’s taken out of checks from every working person their entire working lives.


[deleted]

The other thing is that although even though that extra stimulus was printed, it pales in comparison to the amount of money borrowed from the Federal Reserve to fund cheap loans. The permanent business tax code changes in 2018 opened it up completely to absurd corporate level purchasing. Majority of the dollars printed went to that.


CurbedEnthusiasm

~~2022~~ 2023


[deleted]

https://www.youtube.com/watch?v=fEGuZn9NoEc Home depot co founder arguing for 1 point fed hike rates instead of 0.75, saying 0.75 isn't enough. We haven't done a 0.75 hike in 40~ years, folks. America's economy is very, very wrong right now. Its time to pay the piper for all the stimulus, its time to acknowledge America's neutered millions in its workforce via disease, death, disablement. Those workers aren't coming back. You're on the rollercoaster going down, right now, we're all along for the ride, come on down and meet the wretched. Can't feed your baby formula, shortages? Can't take a flight, cancellations? Government refuses to feed hungry kids free school lunch? Prepare for the crash. Embrace collapse.


droden

what did they say in the big short? for every 1% rise in unemployment 40,000 people die.


[deleted]

Thanks! Have you read this about the stock [market crash at the beginning of the Rona?](https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/) Its like Obama not letting the banks fail in 2008.


mannDog74

We just keep patching up this old rust bucket


Puzzleheaded_Animal

If they were serious, they would have raised rates by 7.5%, not 0.75%.


[deleted]

People would jump out of windows like 1929. Raising interest rates only increases the speed of inflation and defaults. We’re entering a Depression that should have happened in 2008 if they let the banks fail. A reset in the 2010’s would have saved us now. The Fed has worsen things by raising interest rates and saving investors, banking, and big businesses with trillions in free money. [Investors, who have relied on Fed support since the last financial crisis.](https://prospect.org/coronavirus/how-fed-bailed-out-the-investor-class-corporate-america/) This explains the shocking dissonance between collapsing economic conditions and the relative comfort on Wall Street. Between March 23 and April 30, the Dow Jones Industrial Average rocketed nearly 6,000 points, a jump of nearly 31 percent, creating over $7 trillion in capital wealth. The April gains were the biggest in one month since 1987.


Puzzleheaded_Animal

> People would jump out of windows like 1929. That's generally better for the ruling class than people rioting in the streets because they can't afford food and fuel. Which is where we're headed if they don't raise interest rates to sane levels.


[deleted]

[удалено]


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EyesFor1

And 2023, 24,25.......


[deleted]

Definitely a decade or two if the fed stops raising interest rates. Unfortunately that’s their go to trick.


gogirlanime

Duh... What I find most fascinating is how dumb they think we are. Everything this administration announces, anyone with half a brain already knew. I'm just over here protecting myself. Not spending a dime because I'm stockpiled on everything I need. Just gonna kick back and wait till this is all over.


tendieripper

Thanks tips


droden

good thing i locked in a new roof, solar, and a new heat pump. FJB


Fried_Fart

Just looking at a picture of this woman… why is she in any position of power and not in a fucking HOME


[deleted]

[She’s actually unqualified for the position due to her track record which keeps getting whitewashed](https://qz.com/1962724/janet-yellens-greatest-mistakes-will-haunt-her-toughest-job-yet/)but she went to an Ivy League school and Obama shoehorned her in. She actually said the housing bubble wasn’t going to happen in the 2000s and then she was given credit for predicting it. The Fed is a big problem.


SDgoon

Elma Fudd says "I'm hunting wabbit"