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Astonishingly strong US jobs report sends stocks wavering

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Re: Astonishingly strong US jobs report sends stocks wavering

#101

Post by kolbe »

lapcat wrote: post #87
kolbe wrote: post #46

Earlier quoted context omitted.

The only thing that really causes inflation is wage growth, and an observed phenomenon is that overall wage growth does not increase the living standards of workers anyway, because scarce necessities like housing will just increase at a high enough rate to capture all excess wages. On the other hand, the real consequence of wage growth is supply chain and staffing disruptions. If we could get wage growth without offs…

> The only thing that really causes inflation is wage growth I'm truly stunned that you can say this after the pandemic.

A period of time with a lot of inflation and wage growth? How dare I say the two are related.

It's not a blanket statement. Real war causes inflation, monopoly power causes inflation. But in the context of modern US, the biggest thing is wage growth.

Re: Astonishingly strong US jobs report sends stocks wavering

#102

Post by swimfar »

cscurmudgeon wrote: post #51
mensetmanusman wrote: post #13

The wealthiest 10% of Americans own 90% of these stocks. Most of you reading this are in the top 10%. Stock prices are a game among the wealthy who haven’t demanded that workers should be paid more to lower the absurdly high corporate profits.

American workers are highest paid in the world. The same evil “wealthy” investor class is not responsible for Americans getting the highest wages but is only responsible for job cuts? https://en.m.wikipedia.org/wiki/List_of_countries_by_average...

And here's a list of countries ranked by median income based on data from the World Bank. The US is "only" 5th by this measure.

https://worldpopulationreview.com/country-rankings/median-in...

Re: Astonishingly strong US jobs report sends stocks wavering

#103

Post by [deleted] »

Loughla wrote: post #35
mensetmanusman wrote: post #13

The wealthiest 10% of Americans own 90% of these stocks. Most of you reading this are in the top 10%. Stock prices are a game among the wealthy who haven’t demanded that workers should be paid more to lower the absurdly high corporate profits.

Context, for those that were interested like I was. According to Investopedia, based on SSI data. Top .1% is $3,212,486/year 1% is 823,763 5% is 342,987 10% is 173,176 I am waaaaay under that. Education is a joke.

[deleted]

Re: Astonishingly strong US jobs report sends stocks wavering

#104

Post by dougmwne »

PragmaticPulp wrote: post #88
dougmwne wrote: post #43

Earlier quoted context omitted.

Inflation benefits people in debt and light labor markets benefit people who earn a wage. It hurts people who already have accumulated capital in the form of bonds and stocks. The Fed acts to protect the interests of the very rich, at the expense of the lower and middle class. It is a balance. The government is a democracy and corporations need customers, but the wealth gap must be maintained, lest you lose the suppo…

> It hurts people who already have accumulated capital in the form of bonds and stocks. The Fed acts to protect the interests of the very rich, at the expense of the lower and middle class. You're forgetting the primary asset of the middle class: Housing. People purchase housing with mortgages. Inflation raises the price of their home and diminishes the impact of their mortgage debt. Inflation also helps people with…

Exactly! Hyperinflation is terrible and economy destroying. But I think a good argument can be made that moderate inflation, much higher than the typical 3% target is very good for most people.

Re: Astonishingly strong US jobs report sends stocks wavering

#105

Post by Ancalagon »

Longlius wrote: post #68

This is going to keep happening because the underlying issues of why the labor market is tight still haven't been internalized by managers. Baby boomers are retiring and there comparatively aren't many zoomers entering the labor market. Aggregate supply of labor is shrinking every year. I don't think rate hikes are going to be able to solve this problem because it's not an issue of "there's too much money" but rather…

I think the managers have actually rationalized and come to terms with it - after all, they’re the ones raising pay.

It’s the FED that hasn’t seemed to have figured it out yet.

Re: Astonishingly strong US jobs report sends stocks wavering

#106

Post by cscurmudgeon »

lapcat wrote: post #73
cscurmudgeon wrote: post #57

Earlier quoted context omitted.

I wasn’t talking about wage inflation. I don’t want to age either. Nobody does.

> I wasn’t talking about wage inflation. But you were, because inflation includes wage inflation. > I don’t want to age either. This is a non sequitur.

Is wage inflation the only part of inflation?

You are not answering the question. Let me reformulate: How do you reduce general inflation without hitting jobs?

It is okay to admit this is logically not possible.

> This is a non sequitur

It isn’t :)

Re: Astonishingly strong US jobs report sends stocks wavering

#107

Post by boringg »

lapcat wrote: post #12
lr4444lr wrote: post #10

Earlier quoted context omitted.

People employed can afford to buy stuff though, which also increases profit. The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases, which will hurt stocks.

> The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases But there's a direct relation, because the Fed has been very explicit that they're worried about employment and wage growth, and they're raising interest rates in order to depress those. The Fed operates according to the interests of the wealthy.

[flagged]

Re: Astonishingly strong US jobs report sends stocks wavering

#108

Post by Aunche »

lapcat wrote: post #12
lr4444lr wrote: post #10

Earlier quoted context omitted.

People employed can afford to buy stuff though, which also increases profit. The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases, which will hurt stocks.

> The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases But there's a direct relation, because the Fed has been very explicit that they're worried about employment and wage growth, and they're raising interest rates in order to depress those. The Fed operates according to the interests of the wealthy.

This is the nonsense narrative the mainstream media is trying to pedal to drive populist engagement, but it doesn't make any sense. The interest rate hikes have dramatically decreased wealth inequality and tempered inflation without affecting unemployment. The Federal Reserve has shown that they don't care that their high interest rates are driving down stocks, so they'll continue to allow them to tumble. By contrast, they have said that they would lower interest rates again if unemployment increases to much, but by some twisted logic, people think that it means that it's their goal to decrease employment rather than unemployment being something that they actually care about.

Re: Astonishingly strong US jobs report sends stocks wavering

#109

Post by insane_dreamer »

techdmn wrote: post #3

To me the headline says it all. Those workers, being in demand, asking for higher wages. What about our profits! We need a level of desperation in our work force, at least that caused by 4% unemployment, if we can expect to maintain the wealth gap that has been built up over the last years! (If it's not clear from the above, personally I am in favor of low unemployment and higher income equality.)

it feels like no one even cares about the elites anymore; sad, just sad.

Re: Astonishingly strong US jobs report sends stocks wavering

#110

Post by AlgorithmicTime »

cscurmudgeon wrote: post #40
lapcat wrote: post #12

Earlier quoted context omitted.

> The simpler reason is that it means that people believe Fed will read this as a license to not have to slow down rate increases But there's a direct relation, because the Fed has been very explicit that they're worried about employment and wage growth, and they're raising interest rates in order to depress those. The Fed operates according to the interests of the wealthy.

If you have a way of reducing inflation without hitting wages or jobs, please share that with world.

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