It’s the “SHOW A PROFIT OR ELSE SYNDROME”…..CEO’s and production manager’s need to show increasing profit percentages to justify personal salary increases ("hey, look what a good job I’m doing, the company should pay me more and give me a raise)… wouldn’t it be better to give the workers more money? Wouldn’t raising the worker’s standard of living promote a healthier economy?
An economy that was in shambles just a year ago is expanding at a rate that is far greater than expected. People have money. People want to buy stuff. People don’t care that there’s a worldwide pandemic that has slowed other economies and has crippled some industries. People don’t care that companies didn’t order enough product and/or materials months and months ago, when this kind of economic growth had not been predicted.
“I want my pony, and I want it NOW!”
More demand than supply=inflation. Simple answer: don’t buy anything you don’t need for a while. Learn to be patient. This too shall pass.
Risk if the Fed waits too long to “pump the brakes”, a recession induced by raising interest rates. Risk if the Fed pumps too early, a recession induced by raising interest rates. Both of these lead to a bunch of job loss. So, you want to guarantee job loss to prevent possible job loss. Learn some econ, Ariail.
The interest rate should have been raised long ago. Tax revenues from the wealthy decreased even more than usual because of things like execs borrowing against stock options to avoid the (already low) capital gains tax.
EVERY TIME the Fed tries to micro-manage the economy it fails. They have tried it, and they know it cannot work: What they can do is like unto managing a swing by hitting it with a feather. Long term CONSISTENT behavior can have an effect. Short term “fixes” cannot. Powell seems to understand this much better than most people, said group definitely including Arial.
No one really believes that a higher interest rate will automatically cut inflation. It may help, over time, or may cause more problems. Caution is called for, and caution is what we are getting. Good.
DrDon1 over 2 years ago
Does the FED really control the many contributors to ‘Inflation?’
The Love of Money is . . . over 2 years ago
Like the old murder mystery movie where it was found that the brake line had been cut ? Hmm . . .
Display over 2 years ago
Those brake lines were cut a few years ago by cronies and grifters.
S&C = Dismayed&Depressed over 2 years ago
It’s the “SHOW A PROFIT OR ELSE SYNDROME”…..CEO’s and production manager’s need to show increasing profit percentages to justify personal salary increases ("hey, look what a good job I’m doing, the company should pay me more and give me a raise)… wouldn’t it be better to give the workers more money? Wouldn’t raising the worker’s standard of living promote a healthier economy?
I Play One On TV over 2 years ago
An economy that was in shambles just a year ago is expanding at a rate that is far greater than expected. People have money. People want to buy stuff. People don’t care that there’s a worldwide pandemic that has slowed other economies and has crippled some industries. People don’t care that companies didn’t order enough product and/or materials months and months ago, when this kind of economic growth had not been predicted.
“I want my pony, and I want it NOW!”
More demand than supply=inflation. Simple answer: don’t buy anything you don’t need for a while. Learn to be patient. This too shall pass.
Redd Panda over 2 years ago
‘’pump the brakes’‘? maybe the artist doesn’t drive?
XtopherSD over 2 years ago
Risk if the Fed waits too long to “pump the brakes”, a recession induced by raising interest rates. Risk if the Fed pumps too early, a recession induced by raising interest rates. Both of these lead to a bunch of job loss. So, you want to guarantee job loss to prevent possible job loss. Learn some econ, Ariail.
Nantucket Premium Member over 2 years ago
The interest rate should have been raised long ago. Tax revenues from the wealthy decreased even more than usual because of things like execs borrowing against stock options to avoid the (already low) capital gains tax.
Concretionist over 2 years ago
EVERY TIME the Fed tries to micro-manage the economy it fails. They have tried it, and they know it cannot work: What they can do is like unto managing a swing by hitting it with a feather. Long term CONSISTENT behavior can have an effect. Short term “fixes” cannot. Powell seems to understand this much better than most people, said group definitely including Arial.
rossevrymn over 2 years ago
I’d say not all of them, but enough to probably help tamper the problem.
FrankErnesto over 2 years ago
No one really believes that a higher interest rate will automatically cut inflation. It may help, over time, or may cause more problems. Caution is called for, and caution is what we are getting. Good.
mrluke00 over 2 years ago
It’s bidens baby