Supply is getting better

[ededic]

Just released
December ‘21 inflation 7% to December ‘20. No way wages will keep up with that.

That’s great for headlines until the rest catches up and is adjusted. The good news about wages is that they will for the most part stay up where inflation will go down. The great news is that inflation will go down mainly because wages go up and more people to help pay down the debt. Need to look at the long game here, not just the headlines.

 

[JohnDeereJoey]

...The great news is that inflation will go down mainly because wages go up and more people to help pay down the debt. ...

You lost me right after "The great news..."

 

[Torvy]

The great news is that inflation will go down mainly because wages go up and more people to help pay down the debt.

Econ teacher here. This would be false.

The wages chasing inflation will push inflation further up. This is one of the reasons hyperinflation happens. Real wages can typically only rise with a corresponding increase in productivity. Those higher wages mean companies have to charge higher prices to pay for them. Rinse and repeat.

 

[Hay Dude]

Looking beyond the days headlines is hard.

Higher wages make the cost of production higher and make everything cost even more. Anyone who thinks higher wages will be absorbed at the corporate level failed Econ 101.
They will be passed on to the consumer.

 

[ededic]

Roughly 7% of US fuel comes from Russia. 52% from Canada, 11% from Mexico, 7% Saudi Arabia and 4% from Columbia.

Data is from 2020.

 

[KiotiKowboy]

The top 1% have been taking our wealth for years, not enough people have complained.

I would say higher prices we see are being translated in some way into higher wages to give some workers a living wage. We know this is not always the case due to systemic greed but one could make a case for it in some industries as workers are changing jobs and employers are enticing workers to return to work.

Roughly 7% of US fuel comes from Russia. 52% from Canada, 11% from Mexico, 7% Saudi Arabia and 4% from Columbia.

The top 1% provide the mechanisms for others to attain wealth.

Success should be encouraged - not attacked.

We "were" energy independent. We could be again.

 

[stingray1]

Are you trying get this thread closed?

I wasn’t trying to hurt anyones feelings.

 

[ptsg]

I wasn’t trying to hurt anyones feelings.

It's not about feelings but rather about rules of the forum.

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[Torvy]

The top 1% provide the mechanisms for others to attain wealth.

Success should be encouraged - not attacked.

We "were" energy independent. We could be again.

Inflation will widen gaps in pay. Simple example:
Employee A makes $30k a year before 7% inflation, after, pay goes up to $32,100. Employee B makes $60k a year before inflation, after = $64,200. Pay difference goes from $30k to $32,100. This happens over time whenever wages are artificially boosted.

 

[KiotiKowboy]

Inflation will widen gaps in pay. Simple example:
Employee A makes $30k a year before 7% inflation, after, pay goes up to $32,100. Employee B makes $60k a year before inflation, after = $64,200. Pay difference goes from $30k to $32,100. This happens over time whenever wages are artificially boosted.

And ... even though wage inflation will create an ever-growing gap ... wages will never actually keep up with inflation - therefore, everyone also gets poorer.