Wages, Inflation, the Fed, and my sad takeaway

[Anonymous]

For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

[Anonymous]

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

How can we have a consumer-based economy without more consumers? The largest generation (Boomers) are entering retirement, which is when consuming largely ends. Our demographics aren’t good economically, which we solve with immigration.

[Anonymous]

This pretty much sums up America:

https://www.instagram.com/tv/Cnpjf_5vwH4/?igshid=YmMyMTA2M2Y=

[Anonymous]

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

This is why capitalist democracies need to tax enough to have livable minimum wages, universal health care and access to higher education.

Not sure I would blame the fed for all the problems. They are trying to create safety nets for both the poor/ vulnerable and business sectors.

Interestingly, many companies with progressive management policies (good work conditions/ good wages and profit sharing/ listening to concerns of employees) are highly Competitive and perform well as their work forces tend to be highly Motivated and loyal.

[Anonymous]

If Republicans get their way and pass the 30% consumer tax to eliminate income tax, things will get a lot uglier for the working class. Because, it's not just 30% - there will be rate hikes on top of that to cover medicare and social security. Meanwhile, businesses are tax exempt, meaning workers will pay ALL of it.

Business owners and the rich, meanwhile, will set up shell companies, and will buy their real estate, their boats, planes, vehicles and everyday goods through the company, and will avoid all of the taxation. And, there will be nobody to go after them for it, because their plan is "so simple that we can eliminate the IRS."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Weird that Republicans expect everyone to be in the workforce yet do not support childcare.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Weird that Republicans expect everyone to be in the workforce yet do not support childcare.

Or a woman's right to choose what happens to her own body.

It looks like some Republicans want to keep women out of the workforce.

[Anonymous]

Anonymous wrote:If Republicans get their way and pass the 30% consumer tax to eliminate income tax, things will get a lot uglier for the working class. Because, it's not just 30% - there will be rate hikes on top of that to cover medicare and social security. Meanwhile, businesses are tax exempt, meaning workers will pay ALL of it.

Business owners and the rich, meanwhile, will set up shell companies, and will buy their real estate, their boats, planes, vehicles and everyday goods through the company, and will avoid all of the taxation. And, there will be nobody to go after them for it, because their plan is "so simple that we can eliminate the IRS."

Not just the working class. We've recently moved back here from overseas (DH is military) and we've had to buy new cars, furniture and home goods. A 30% consumer tax would definitely have affected our spending. For example, instead of spending $$$ on our new, US-made couch, we would either have bought a cheaper made in China (or elsewhere) couch or kept hold of our 17-year-old one.

I can't see how this consumer tax would be beneficial to the US economy. People always mention VAT in Europe, but people in Europe typically live in smaller houses, buy smaller cars, and have access to public transportation. We definitely spent less on consumer goods when we lived there, because we did not buy as much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Kid was old enough to be in public

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Weird that Republicans expect everyone to be in the workforce yet do not support childcare.

Why allow someone who has no obvious skills into the country to begin with, especially when they have dependents?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If Republicans get their way and pass the 30% consumer tax to eliminate income tax, things will get a lot uglier for the working class. Because, it's not just 30% - there will be rate hikes on top of that to cover medicare and social security. Meanwhile, businesses are tax exempt, meaning workers will pay ALL of it.

Business owners and the rich, meanwhile, will set up shell companies, and will buy their real estate, their boats, planes, vehicles and everyday goods through the company, and will avoid all of the taxation. And, there will be nobody to go after them for it, because their plan is "so simple that we can eliminate the IRS."

Not just the working class. We've recently moved back here from overseas (DH is military) and we've had to buy new cars, furniture and home goods. A 30% consumer tax would definitely have affected our spending. For example, instead of spending $$$ on our new, US-made couch, we would either have bought a cheaper made in China (or elsewhere) couch or kept hold of our 17-year-old one.

I can't see how this consumer tax would be beneficial to the US economy. People always mention VAT in Europe, but people in Europe typically live in smaller houses, buy smaller cars, and have access to public transportation. We definitely spent less on consumer goods when we lived there, because we did not buy as much.

It would be instead of, not in addition to

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Weird that Republicans expect everyone to be in the workforce yet do not support childcare.

Why allow someone who has no obvious skills into the country to begin with, especially when they have dependents?

Xenophobia isn’t the answer to America’s problems.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For years American workers saw no wage increases. Finally that trend turned around and workers started to see wage growth but then inflation kicked in due to Covid, the pandemic backlog of shipping containers, the war in Ukraine, and stimulus packages. The Fed then increases rates to tap down inflation, which causes businesses to start having layoffs. The Fed can’t have inflation and solves to by having businesses lay off workers. The Fed can’t have everyone working because of inflation. There must be unemployed or underemployed people. Wage growth can’t happen too much or else inflation happens. My takeaway is there has to be a underclass in order for our system to work.

Importing people to beg on the streets isn’t good policy either. Woman outside Giant yesterday near a ‘help wanted’ sign, with her own sign begging for money, her child playing on the railings next to her. I pointed to the sign and said “they are hiring”.

Hope they pay enough for her to afford child care in addition to her other expenses.

Weird that Republicans expect everyone to be in the workforce yet do not support childcare.

Why allow someone who has no obvious skills into the country to begin with, especially when they have dependents?

Xenophobia isn’t the answer to America’s problems.

DP
That is not xenophobic at all. Shouldn't we want to welcome people here who have something to contribute to society? Shouldn't we want people who have skills or a desire to work and who follow our laws?