The question is - have wages out paced inflation at the same pace since this stagflation hit.
Having a job is awesome but if the cost of living is outpacing wages then it erodes purchasing power and savings.
We don’t have stagflation.
The 3 characteristics of stagflation are rising prices, high unemployment and load economic growth.
Unemployment is at 3.7%,
We’ve had higher than expected GDP Growth
GDP for 2023 was 2.6%.
Manufacturing investment rose to historical highs
Inflation is falling and unemployment is at historical lows
Currently, wage growth it outpacing inflation. Though, tough to have systemic wage growth without collective bargaining, which of course, you’re against.
Why would you think we had stagflation?
Wages have risen very fast, especially the purchasing power of lower income has gone up. I saw a story about income equality evening out a bit in the last few years, meaning the difference in wages from the bottom of companies to the top has reduced.
If true, that’s a trend I’d like to see continue.
I’m sure I’ll never read a response from GSC on his “stagflation” remark. Guy has a long history of problems with the truth
My comment was retrospective. Covid absolutely caused stagflation.
Unemployment reached 14.8%.
Inflation increased.
Demand went through the floor.
I understand we recovered. My question was , have wage increases caught up to cost of living increases.
But once again- you’re so caught up in trying to get a cheap technical win that you missed the point of my question.
305 thanks for the context.
Interesting theory, but your timelines are out of whack. When we had high unemployment, we had little inflation. Unemployment had subsided by the time inflation hit in 2021.
No need to score a win over you. You are incorrect so often it loses its appeal.
Right but I’m not sure 6 months or a year really “separated” them for lack of better work. All of it was hand-in-hand
Right- he acts as though these factors have to all happen simultaneously for it to be a stagflation event.
Covid caused a lockdown.
Lockdowns caused rapid unemployment
Rapid unemployment and the closing of ports caused a sharp decrease in demand.
Inflation came a bit later.
Oopsie. Whatever dude.
My question was still valid. Did wages/salaries keep pace with inflation. 305 answered and I agree that see seem to have.
But our friend here is still stuck on this technicality. Whatever. It’s boring.
They do. That’s the definition of stagflation. They all 3 have to happen at the same time, or during the same period, or its not stagflation. Words have definitions.
Inflation was 1.8% in 2019, when we had negative GDP growth. By 2020, we had positive GDP growth over 2% but only 1.2% inflation. Inflation jumped to 4.7% in 2021 but by that time we had 5.9% growth and then a little over 2% growth. Unemployment fell to 3.9% by the time inflation began hitting.
That’s how definitions work. That’s also how you lie about the narrative and then how you’re proven wrong and then never, absolutely never, walk anything back.
Yep, that means your question was wrong in that you based it on a premise that was false.
They are connected, but it’s not stagflation. I’m not sure why everyone has such a problem with definitions. If they are separated by a year and a half, they didn’t happen together. Unemployment hit in 2019. Inflation hit in 2021. Ispo facto…not stagflation. It’s a false narrative. Once again, like always, you’re wrong but refuse to acknowledge it. Nothing new
By your own graph it hit in 2020…I mean with a clear-cut reason.
Skeeter- it’s not worth it. He’d rather focus on one word in my entire comment than the actual substance of my question. He’s an opportunist. But if you don’t give him much attention he tends to fade away. Took me a year to learn it.
Copy that, my mistake.
You’re always such a martyr