The US economy is doing well. President Biden wants to know why so many Americans are still feeling bad
The US economy is doing well. President Biden wants to know why so many Americans are still feeling bad
By many metrics, the US economy is humming along. The jobs market is robust; consumers are spending again; and inflation has eased to a three-year low.
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Disinflation is different than deflation. Prices aren’t changing, that’s good. Prices changed to be bad and aren’t changing, that’s bad.
Now, while I don’t think we want deflation amok, because that’s insanely bad for everyone, what I think we can all agree with is wages need to go up or there needs to be some price control the likes this country hasn’t seen before.
That’s the problem with the economy. This new normal isn’t comfortable. While we’re finally solidifying what this new normally is and volatility is going down, what we’re settling on isn’t good. And pretending that eventually wages will come to match, that’s not realistic. Playing the waiting game is going to wreck a lot of jobs.
Deflation is only bad because companies hold their employees (and customers) hostage to their profit ideal.
The main thing that's always touted as the main bad thing about deflation is that people are less inclined to spend money.
I don't know about you, but most of my money goes to essentials that I'm not going to just stop paying for. The only people that are going to stop spending money are the precious few with large disposable incomes.