https://archive.ph/2022.04.05-214356/https://www.economist.com/finance-and-economics/are-labour-markets-in-the-rich-world-too-tight/21808579
It is likely, therefore, that in America and elsewhere labour markets will have to be cooled the old-fashioned way: by central banks raising interest rates, making it a little more attractive to save than spend and thereby choking off demand for labour. The Fed has already raised rates by 0.25 percentage points, and is expected to raise them by a total of 2.5 points this year. America may well prove an example of what happens when policymakers respond to a labour market that has become dangerously hot.
Yes. And this contracted the labor market, which is hurting investments.
So now we need to turn off the FREE MONEY spigot that powers the economy, liquidate a bunch of useful capital in a debt-collapse fire sale, and shrink the total number of jobs in the market to prevent anyone from organizing labor towards a productive end.
This may result in another million people dying and another tightening of the labor market. But that's ok, because we can always ratchet the interest rates a bit higher with no foreseeable negative consequences.
Sure would be funny if the fed raises interest rates, but inflation keeps going up cause it's really caused by price hikes and supply chain disruptions
I bet that would rustle some jimmies
That's called Stagflation and the only cure is to jack interest rates REALLY REALLY HIGH until entire industries collapse and we fall into a prolonged depression.
Its hard to say by how much but a chunk of this inflation is caused by people gambling massive amounts of money on real-estate with low intrest from the fed.
