Posted on 04/29/2022 7:17:28 AM PDT by Browns Ultra Fan
Not only has The Federal Reserve driven M2 Money Velocity to near historic lows, but now we find out that the Employment Cost Index just rose to a historic high.
Of course, a variety of minimum wage laws have helped drive up employments costs. Don’t tell lawmakers that minimum wage laws lead to higher inflation since they typically deny responsibility for anything. But I can almost picture the 4 Horsemen of the Inflation Apocalypse (Powell, Biden, Pelosi, Schumer) sitting around asking “What we can do to make inflation worse?”
We did see the PCE Deflator YoY rise to 6.6%, the highest since 1982, the highest in 40 years.
Personal spending increased to 1.1% in March, probably panicking buying over further inflation.
A PCE Deflator of 6.60% leads to a Taylor Rule estimate of 9.05% for The Fed Funds Target Rate.
The Federal government and Federal Reserve trying to solve inflation reminds me of Parks and Recreation’s Jerry Gergich trying to celebrate his retirement.
(Excerpt) Read more at confoundedinterest.net ...
Fixed Income No Kids(FINKs) least affected by employment costs.
He’s certainly no Ron Swanson.
Regardless, the minimum wage should have been trashed decades ago. Just wait, these commies in Congress will raise the minimum wage to outrageous heights to combat inflation. Of course, that will be double whammy. It will kill small businesses and increase inflation.
Employment costs is another in the list of inflation drivers and inflation hurts all.
Well, we certainly must. Seems like any program that comes along to provide help......we make $5.00 too much to qualify. 😂🙌💸💸💸💸💸
“... the minimum wage should have been trashed decades ago.”
For years I’ve been defending the minimum wage jobs. They have a purpose. But the problem is that their use has been distorted by definition for political purposes.
A minimum wage job many years ago was to create a work force of low level, low expectation, jobs to be performed by people that were not even really part of the company payrolls. These were jobs like wrapping packages at Christmas or dumping trash and sweeping floors. They were just some of the small needed things that didn’t require a whole lot of knowledge, education, or experience, and were handled by people that were not interested in being the VP of sales.
The term minimum wage, has now been exchanged for entry level employment. That’s the guy or gal that start in the mail room and maybe someday earn the opportunity to become the CEO of the business. And if they have an education and/or experience, they may be assigned to work in a higher degree of responsibility to start which should garnish a higher wage.
So by misusing the term, it offers employers the possibility of restructuring their wage scale and raising it with success at a lower rate rather than establishing a fair wage for a fair job completion at different levels with a low payment. And it also creates the illusion of success with pay raises to get to where they could have been paid to begin with. And there are more people working in the mail room than at a desk on the first floor doing filing but each is getting the same money. One has better bathrooms.
wy69
I don't give a damn about good intentions and touchy feely socialism. Setting a minimum wage is a price control on labor. It does not work. It never has worked.
I reckon I’m a FINK, too. Getting by okay, so far. Hoping to avoid a major medical for as long as possible!
Yup. Mrs rktman’s med ins is $700+/math for a “bronze plan. I use the VA and medicare so we’re okay there. When she starts her SS and then Medicare we will be fine. I hope. 😊 Good luck with this train wreck we’re in now.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.