Wage costs chase other costs.
They trail goods and energy inflation, and labor actually often ends up net-negative and then they cut spending, which causes the other prices to fall in line with the fall in consumption.
We're starting to see this now. It was merely delayed because consumers had access to credit and welfare, and didn't have to curtail spending.
Also, mass immigration pushes goods prices up and wages down (that's why governments like it). So, that compounds the bifurcation.
Laeserin
npub1m4n…c2jl
2024-06-04 09:13:01
in reply to nevent1q…cs59
Author Public Key
npub1m4ny6hjqzepn4rxknuq94c2gpqzr29ufkkw7ttcxyak7v43n6vvsajc2jlPublished at
2024-06-04 09:13:01Event JSON
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"content": "Wage costs chase other costs. \n\nThey trail goods and energy inflation, and labor actually often ends up net-negative and then they cut spending, which causes the other prices to fall in line with the fall in consumption.\nWe're starting to see this now. It was merely delayed because consumers had access to credit and welfare, and didn't have to curtail spending.\n\nAlso, mass immigration pushes goods prices up and wages down (that's why governments like it). So, that compounds the bifurcation.",
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