The Fed’s Little Beige Book: Keyword? SHORTAGES!

Confounded Interest ^ | 09/08/2021 | Anthony B. Sanders

[Browns Ultra Fan]

The Fed’s Little Beige Book. Keyword? SHORTAGES!

Overall Economic Activity:

The other sectors of the economy where growth slowed or activity declined were those constrained by supply disruptions and labor shortages, as opposed to softening demand. In particular, weakness in auto sales was widely ascribed to low inventories amidst the ongoing microchip shortage, and restrained home sales activity was attributed to low supply.

Residential construction was up slightly, on balance, and nonresidential construction picked up modestly. Trends in loan volumes varied widely across Districts, ranging from down modestly to up strongly. Reports on the agriculture and energy sectors were mixed across Districts but, on balance, positive. Looking ahead, businesses in most Districts remained optimistic about near-term prospects, though there continued to be widespread concern about ongoing supply disruptions and resource shortages. Employment and Wages:

All Districts continued to report rising employment overall, though the characterization of the pace of job creation ranged from slight to strong. Demand for workers continued to strengthen, but all Districts noted extensive labor shortages that were constraining employment and, in many cases, impeding business activity. Contributing to these shortages were increased turnover, early retirements (especially in health care), childcare needs, challenges in negotiating job offers, and enhanced unemployment benefits. Some Districts noted that return-to-work schedules were pushed back due to the increase in the Delta variant. With persistent and extensive labor shortages, a number of Districts reported an acceleration in wages, and most characterized wage growth as strong—including all of the midwestern and western regions. Several Districts noted particularly brisk wage gains among lower-wage workers. Employers were reported to be using more frequent raises, bonuses, training, and flexible work arrangements to attract and retain workers

[Browns Ultra Fan]

As Milton Friedman once said, “If you put The Federal Government in charge of the Sahara Desert, in 5 years there would be a shortage of sand.” And The Fed is no slouch at creating shortages either.

[cgbg]

Employers were reported to be using more frequent raises, bonuses, training, and flexible work arrangements to attract and retain workers

Do vaccine mandates count as "flexible work arrangements?

This has to be the Babylon Bee imitating the Fed...

[MNJohnnie]

Thank Joe Biden and his Democrat cronies

Labor Shortage/High Unemployment/Out of Control inflation.

Not even Carter screw up this badly

[butlerweave]

I bet Nancy’s Fridges are FULL

[AZJeep]

The worst problem ordinary citizens of communist countries encounter are the constant shortages of practically everything. The government always finds some explanation for this or that temporary shortage. People eventually find out that shortages are permanent and explanations are lame.
It really feels like we are entering the early socialist phase.
It only gets worse, folks!

[Who is John Galt?]

Not even Carter screw up this badly

Carter was an altogether average person, who reached for something far beyond his actual capabilities when he ran for president. But good ol' Jimmy was a paragon of wisdom, statesmanship, and courage, compared to the arrogant, senile jack@ss currently inhabiting the White House...

[pangaea6]

ive noticed some bare shelves in a couple grocery stores, was planning on moving further out of city and start a farm about 30 min. away and work on self sufficiency, maybe too late now, hunker down and conserve cash, hard to know

[griswold3]

Old communist saying: “ We pretend to work. They pretend to pay.”