The meat packing job example got me thinking... are we just better off trying to automate that type of work? On top of the safety concerns and working conditions, is that really a job someone wants?
Good post. I love Furman’s “uncomfortable hot jobs report” … we certainly wouldn’t want millions more Americans to have jobs. That would sacrilegious! Where did those supply chain shortages come from afterall?
Totally agree. This is a supply inflation. The Fed thinks raising interest rates will decrease demand and cause inflation to decrease. It has to a point in reducing gasoline use and increasing mortgage rates. But we still have a shortage of housing. This is not going away. The influx of immigrants coming from our southern border still need to live somewhere which makes the shortage even worse. Eventually they will be allowed to work and will need housing. And it is going to take years to get the number of electric cars to make up for the shortage of refinery output. ( increase in electric output should be the next national goal )
The increase in jobs in in areas where there is a shortage of jobs will actually reduce prices since it will increase supply.
How incredible that labor shortage driven inflation is still not enough for the country to have a grown up conversation about immigration. Our leadership sucks. Fueling polarization does too.
The meat packing job example got me thinking... are we just better off trying to automate that type of work? On top of the safety concerns and working conditions, is that really a job someone wants?
Good post. I love Furman’s “uncomfortable hot jobs report” … we certainly wouldn’t want millions more Americans to have jobs. That would sacrilegious! Where did those supply chain shortages come from afterall?
Totally agree. This is a supply inflation. The Fed thinks raising interest rates will decrease demand and cause inflation to decrease. It has to a point in reducing gasoline use and increasing mortgage rates. But we still have a shortage of housing. This is not going away. The influx of immigrants coming from our southern border still need to live somewhere which makes the shortage even worse. Eventually they will be allowed to work and will need housing. And it is going to take years to get the number of electric cars to make up for the shortage of refinery output. ( increase in electric output should be the next national goal )
The increase in jobs in in areas where there is a shortage of jobs will actually reduce prices since it will increase supply.
Claudia - consumer spending is growing at 8% (annualized) rate.
How do you argue that kind of demand growth is not inflationary or sustainable?
How incredible that labor shortage driven inflation is still not enough for the country to have a grown up conversation about immigration. Our leadership sucks. Fueling polarization does too.