Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Q1 US Employment Costs Skyrocket Most In History Helping To Increase Already Soaring Inflation (PCE YoY Rises To 40-year High of 6.60% YoY)
Confounded Interest ^ | 04/29/2022 | Anthony B. Sanders

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. Donโ€™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 โ€œWhat we can do to make inflation worse?โ€

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 Recreationโ€™s Jerry Gergich trying to celebrate his retirement.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government
KEYWORDS: biden; fed; inflation; taylorrule
Biden is a vicious and corrupt version of Jerry Gergich from Parks and Recreation.
1 posted on 04/29/2022 7:17:28 AM PDT by Browns Ultra Fan
[ Post Reply | Private Reply | View Replies]

To: Browns Ultra Fan

Fixed Income No Kids(FINKs) least affected by employment costs.


2 posted on 04/29/2022 7:25:57 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? ๐Ÿ˜•)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Browns Ultra Fan

He’s certainly no Ron Swanson.


3 posted on 04/29/2022 7:26:57 AM PDT by EEGator
[ Post Reply | Private Reply | To 1 | View Replies]

To: Browns Ultra Fan
Question: Where are these minimum wage jobs? I wonder if a lot of those jobs are in food service, at the lower minimum wage rate because to tips received. Around this area (South Central PA), there are very few minimum wage jobs.

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.

4 posted on 04/29/2022 8:26:26 AM PDT by ConservativeInPA (Scratch a leftist and you'll find a fascist )
[ Post Reply | Private Reply | To 1 | View Replies]

To: rktman
Fixed Income No Kids(FINKs) least affected by employment costs.
They must eat and pay for utilities, at the least, don't they? And pay property taxes, either directly or indirectly.

Employment costs is another in the list of inflation drivers and inflation hurts all.

5 posted on 04/29/2022 8:40:27 AM PDT by citizen (Thieves of private property pass their lives in chains; thieves of public prop. in riches and luxury)
[ Post Reply | Private Reply | To 2 | View Replies]

To: citizen

Well, we certainly must. Seems like any program that comes along to provide help......we make $5.00 too much to qualify. ๐Ÿ˜‚๐Ÿ™Œ๐Ÿ’ธ๐Ÿ’ธ๐Ÿ’ธ๐Ÿ’ธ๐Ÿ’ธ


6 posted on 04/29/2022 8:50:15 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? ๐Ÿ˜•)
[ Post Reply | Private Reply | To 5 | View Replies]

To: ConservativeInPA

“... 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


7 posted on 04/29/2022 8:53:31 AM PDT by whitney69
[ Post Reply | Private Reply | To 4 | View Replies]

To: whitney69
Sorry, I have to disagree. I have known all of my long life that most things government mandates has negative consequences and allows abuse. In real capitalism, the market always does an incredibly better job at setting proper prices for goods or employment than some morn in DC that has never owned and operated a business. And for that matter ever worked in a real job.

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.

8 posted on 04/29/2022 8:59:15 AM PDT by ConservativeInPA (Scratch a leftist and you'll find a fascist )
[ Post Reply | Private Reply | To 7 | View Replies]

To: rktman

I reckon I’m a FINK, too. Getting by okay, so far. Hoping to avoid a major medical for as long as possible!


9 posted on 04/29/2022 9:18:48 AM PDT by citizen (Thieves of private property pass their lives in chains; thieves of public prop. in riches and luxury)
[ Post Reply | Private Reply | To 6 | View Replies]

To: citizen

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. ๐Ÿ˜Š Good luck with this train wreck we’re in now.


10 posted on 04/29/2022 9:25:52 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? ๐Ÿ˜•)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Browns Ultra Fan
Minimum Wage is designed to coerce employers to hire illegal aliens instead.
11 posted on 04/29/2022 9:58:54 AM PDT by T.B. Yoits
[ Post Reply | Private Reply | To 1 | View Replies]

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.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson