Is it just this? It's gonna stop working lol, it already is

What is the US response to supply chain and job market collapse?

Are they just so fucking up their own ass they aren't seeing the issue? I do not understand

https://www.cnbc.com/2022/01/12/cpi-december-2021-.html

That's a 7% inflation lol. Thats across the board too, I'm sure certain markets are higher.

Food and housing are rising at 07-08 levels, but they're just shrugging at it

Like that ain't gonna work without some kind of interference from the fed. What the fuck is the response

  • star_wraith [he/him]
    ·
    3 years ago

    I once took a class where for an entire semester, the professor just dissected the 2008-09 financial crisis. One conclusion I took was that even at the time, economists more or less understood the problems and understood the solutions. Where the big disagreement were was on which solution was the most realistic to implement. Like, most economists (who weren't Milton Friedman acolytes) may have thought the Swedish solution of straight up nationalizing the banks temporarily was a pretty great idea. But also not really a political possibility in the US. So there was unity on the understanding of the problems and even to some extent on the costs/benefits of different solutions, just a question of what could be done.

    As far as I can tell, economists can't even agree that there are real, serious, structural problems right now. And if they agree there are problems, they can't agree on what those problems are. And if they can agree on what they problems are, they can't agree on what to do about it or even if something can be done. So I'm convinced something's gonna bite us the ass that will be obvious in hindsight but economists won't pick up on till it's too late.

    I will say though, for decades interest rates have been one of if not THE big tool of economic policy, because rates have always been high enough to be lowered. If economic policy is GoldenEye then interest rates are like the RCP-90 or AR-15: super powerful, reliable, and always there. Now interest rates basically can't be lowered if they need to stimulate the economy, so just at the start of a downturn the Fed won't have their #1 weapon, which is really bad news for avoiding a big recession.

    • Dingdangdog [he/him,comrade/them]
      hexagon
      ·
      3 years ago

      I was thinking about this when I made the post. The economists of the US are indoctrinated into a religion apeing that of an ideology.

      Years and years of learning about this market, yet failing to even consider the labour side of the line. It's so odd. Completely irrational.

      I was thinking about the interest rate as well. Would they go negative in an attempt to make line go up one last time?

      • Mother [any]
        ·
        3 years ago

        Helicopter cash

        For businesses of course, not for you

        The trump tax cuts were more or less this