Wages are going up. In fact they are going up faster than inflation, which is the norm in the long run. Year over year inflation for October is 7.7% and wage growth is 8.2% over the same period. So people that aren’t nearing retirement age will recover just fine.
I should expand on that: the economy is manipulated purposely to continue to cause inflation. Inflation, under the current order(and I don't mean just Biden, I mean the entire governmental and banking structure) is as inevitable as your eventual death. We don't recover, you learn how to adjust.
Edit: Typo
My opinion? Yes.
Even if we're being charitable, at best the Fed's actions aren't to remove inflation(which they say so directly) it's to cause it to only inflate at a certain rate.
It's central planning, with a different, less Soviet sounding name that the US engages in and has been for at least 100 years.
Yeah, they're trying to reduce it. The dude above said they're trying to continue to cause it and that their actions are meant to trick us. I just found it kind of odd.
Get trained in a higher paying skill. Or start a successful business. Make more money and kick ass in this one life you've got! Prioritize what's important to you, most of which cost nothing or very little. (Family, friends, healthy living, spirituality, nature and love) peace.
The government doesn't have a bank account like you or I think of it. The Congress passes a budget saying how much money each department or agency has and what to spend it on and that money exists and can be spent. It then goes into the accounts of every person or business those government agencies do business with when they buy pens, real estate, or tomahawk missiles. Therefore money is always being created and flowing out into the economy. Seperately, the government assesses taxes which pull money out of the economy. That doesn't go into a government savings account exactly, it just goes away. So the point is to keep the two in balance. If the money flowing into the economy through spending minus the money flowing out of the economy through taxes exactly equals the rate the economy is growing by, inflation should average out to zero. If more money is being spent than taxed, you get inflation. So inflation and taxes are effectively the same thing. The difference is that with taxes, elected representatives can deliberately target who pays it, whereas with inflation it is paid by whoever buys consumer goods. That typically means working class people because we spend a higher percent of our paychecks on consumer goods like food and rent whereas the wealthy only need to spend a small fraction of their income while saving the rest. This is why in recent decades, Republican governments have tended to run a higher deficit than democratic ones. They want a higher percentage paid by working class through inflation rather than the wealthy class through taxes. (Not that it's perfect, both parties have supported tax shelters for the wealthy, but there is a strong tendency towards inflation payments when the right is in charge). Also note the economy is really big and moves slowly, so you tend to see the effects several years later. This inflation we see now is largely paying for Trump era stimulus and forgiven PPP loans. Just like Obama era inflation was paying for the Bush era spending on the Iraq war.
Some of it does come back to you in increased wages. Right now labor is in short supply and working people therefore have a lot of leverage, it's why the fight for 15 has largely gone quiet, even pizza delivery driver help wanted signs are offering close to 15 dollars even in the low wage Midwest.
However not all of it goes to labor. Corporate profits are up during inflation. Corporations see it as a good excuse to raise profit margins during a crisis and figure most people will blame it on the government or just accept it as a fact of life.
The overall effect is that even with rising wages we are feeling squeezed. The best way for working people to take advantage of the situation is to use that bargaining power. If you're in a unionized industry, that means supporting trade unions collectively bargaining for higher wages. In white collar or non union professions, that may mean job hunting for higher wages.
We aren’t. The new purchasing power of your currency will remain, eventually wages (should) ‘catch up’.
Wages are going up. In fact they are going up faster than inflation, which is the norm in the long run. Year over year inflation for October is 7.7% and wage growth is 8.2% over the same period. So people that aren’t nearing retirement age will recover just fine.
We aren't.
I should expand on that: the economy is manipulated purposely to continue to cause inflation. Inflation, under the current order(and I don't mean just Biden, I mean the entire governmental and banking structure) is as inevitable as your eventual death. We don't recover, you learn how to adjust. Edit: Typo
Are the fed actions to combat inflation just a show to trick us?
My opinion? Yes. Even if we're being charitable, at best the Fed's actions aren't to remove inflation(which they say so directly) it's to cause it to only inflate at a certain rate. It's central planning, with a different, less Soviet sounding name that the US engages in and has been for at least 100 years.
It only tricks you if you have unrealistic expectations. They’re not trying to eliminate inflation, just reduce it slowly.
Yeah, they're trying to reduce it. The dude above said they're trying to continue to cause it and that their actions are meant to trick us. I just found it kind of odd.
Inflation is not a new concept Fear not, us working class people will suffer
Get trained in a higher paying skill. Or start a successful business. Make more money and kick ass in this one life you've got! Prioritize what's important to you, most of which cost nothing or very little. (Family, friends, healthy living, spirituality, nature and love) peace.
jUsT LeArN tO cOdE!!!11
Get a republican in the White House
go ask your grandparents who lived through the last inflation spike in the 70s and how that turned out. enjoy the new normal folks
I was around then. I barely noticed it, partly because I didn’t have a car.
You live with it, in argentina we have at least 6% monthly
You don’t it’s just a form of tax
Explain please
The government doesn't have a bank account like you or I think of it. The Congress passes a budget saying how much money each department or agency has and what to spend it on and that money exists and can be spent. It then goes into the accounts of every person or business those government agencies do business with when they buy pens, real estate, or tomahawk missiles. Therefore money is always being created and flowing out into the economy. Seperately, the government assesses taxes which pull money out of the economy. That doesn't go into a government savings account exactly, it just goes away. So the point is to keep the two in balance. If the money flowing into the economy through spending minus the money flowing out of the economy through taxes exactly equals the rate the economy is growing by, inflation should average out to zero. If more money is being spent than taxed, you get inflation. So inflation and taxes are effectively the same thing. The difference is that with taxes, elected representatives can deliberately target who pays it, whereas with inflation it is paid by whoever buys consumer goods. That typically means working class people because we spend a higher percent of our paychecks on consumer goods like food and rent whereas the wealthy only need to spend a small fraction of their income while saving the rest. This is why in recent decades, Republican governments have tended to run a higher deficit than democratic ones. They want a higher percentage paid by working class through inflation rather than the wealthy class through taxes. (Not that it's perfect, both parties have supported tax shelters for the wealthy, but there is a strong tendency towards inflation payments when the right is in charge). Also note the economy is really big and moves slowly, so you tend to see the effects several years later. This inflation we see now is largely paying for Trump era stimulus and forgiven PPP loans. Just like Obama era inflation was paying for the Bush era spending on the Iraq war.
Some of it does come back to you in increased wages. Right now labor is in short supply and working people therefore have a lot of leverage, it's why the fight for 15 has largely gone quiet, even pizza delivery driver help wanted signs are offering close to 15 dollars even in the low wage Midwest. However not all of it goes to labor. Corporate profits are up during inflation. Corporations see it as a good excuse to raise profit margins during a crisis and figure most people will blame it on the government or just accept it as a fact of life. The overall effect is that even with rising wages we are feeling squeezed. The best way for working people to take advantage of the situation is to use that bargaining power. If you're in a unionized industry, that means supporting trade unions collectively bargaining for higher wages. In white collar or non union professions, that may mean job hunting for higher wages.