[CoachKandSportsguy]

Funny when there's supply shortages or cost pressure, it's just "oh well, that's the risk of doing business" but when workers demand a fair wage, it's "nobody wants to work and they're going to force the business to close"

No business has a right to cheap labor. It's a risk too, and an entitled business owner belief

What's good for companies is not necessarily good for employees, and what is good for employees is not necessarily good for companies, there is a balance

So there occasions when there are imbalances, and they will rebalance in time, once mostly management figures out what they can give up to have the company growing again.

not politics, but economic talk. . . so talk economics and the moderator won't close the thread, unless you can't help yourself

[Stu from NYC]

I wonder how many people are staying home just to collect unemployment now and how things might change when this ends.

Unemployment figures low now but they do not include people who are not currently looking for work.

[CoachKandSportsguy]

Consumer spending fell after adjusting for red hot inflation in May. The cooling in spending was in areas where bottlenecks and disdain over price hike a was the greatest. Big Downwards arrow in spending on big ticket durable goods - new & used vehicle, furniture, appliances; Upwards arrow in services.

Spending in April revised much higher. Big upward revisions to spending on goods for month. Personal disposable incomes posted second large decline, as boost triggered by stimulus checks continued to wear off. Next round of stimulus in July w/enhanced child tax credits checks.

Overall PCE inflation rose 3.9% from year ago in May, hottest since 2008. Core PCE up 3.1% from year ago, hottest since 1992. That was before the Great Moderation in inflation & interest rates of 1990s. Fed now leaning more toward hikes in 2023 than 2024.

Pivot in spending from goods should alleviate upward pressure on goods prices over summer, but found take until into 2022 for inflation to moderate. Fed’s patience on rate hikes will be tested. Note: Hike in 2022 justified if you start averaging inflation in 2020.

Tension will be how far is Fed willing to let the labor market, which is lagging overall economic gains, heal. Much of surge in wages for low wage jobs currently could also be transitory. Humility over hubris is warranted on forecasts.

I read and listen to educated and today's economists with lots of experience. . .

[JMintzer]

I want to know where all of this "cheap labor" is hiding...

[oldtimes]

Originally Posted by JMintzer

I want to know where all of this "cheap labor" is hiding...

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