The 'scariest economic paper of 2022' predicts big layoffs over the next 2 years as the fight against inflation gets more intense

yahoo.com ^ | 9/9/22 | Jason Lalljee

[Roman_War_Criminal]

-Rising interest rates combat inflation by encouraging companies to cut expenses — often at the cost of jobs.

-An economist who served under Obama predicts a 6.5% average unemployment rate to reach desired inflation levels.

-That would reverse the current trend in which companies are scrambling to hire workers, not fire them.

Inflation in the US looks like it's peaked, but we're not out of the woods yet. The fight to bring down surging price growth could mean a rough two years for job seekers — a hard pivot from the power they've enjoyed during the Great Resignation.

That's according to a new paper from the Brookings Institution, which predicts that a high unemployment rate will be necessary to combat inflation. Inflation is typically inversely tied to unemployment. The rule goes: when unemployment drops, inflation rises, and when unemployment is high, inflation goes down.

[SoConPubbie]

There is absolutely NO fight against inflation!

Just another BIG Lie!

They are purposefully trying, and succeeding, to tank our economy!

[upchuck]

FReepers wishing to aviod a trip to yahooland, and all that implies, can find the original article here:

https://www.businessinsider.com/layoffs-unemployment-coming-inflation-fed-interest-rates-gas-prices-2022-9

[adorno]

The left is trying to normalize bad times and a bad economy and high unemployment. Once people feel that there is nothing they can do, like democrats are saying, all is lost, including the best country that ever was.

[ridesthemiles]

Calif has over 560,000 ‘fast food’ workers.

Newsom created a UNION for such workers...

He also DEMANDED a starting wage of $22 an hour for those 560,000 fast food workers...

The first massive layoffs will be there-—mark my words.

[upchuck]

From the article:

Because of this outlook, Jason Furman, former chairman of the White House Council of Economic Advisers under President Obama, called this "the scariest economic paper of 2022."

Why would anyone pay attention to something that comes from a person who was a honcho during the nobama adiminstration?

[GeorgianaCavendish]

“Inflation is a disease, a dangerous and sometimes fatal disease, a disease that if not checked in time can destroy a society. Examples abound, Hyperinflations in Russia and Germany after World War 1-when prices sometimes doubled and more than doubled from one day to the next-prepared the ground for communism in the one country and [N]azism in the other. The hyperinflation in China after World War II eased Chairman Mao’s defeat of Chiang Kai-shek. Inflation in Brazil, where it reached about 100 percent in a year in 1954, brought military government. A far more extreme inflation contributed to the overthrow of Allende in Chile in 1973 and of Isabel Peron in Argentina in 1976, followed in both countries by the assumption of power by a military junta.

“No government is willing to accept responsibility for producing inflation, even in less virulent degree. Government officials always find some excuse-greedy businessmen, grasping trade unions, spendthrift consumers, Arab sheikhs, bad weather, or anything else that seems even remotely plausible. no doubt, businessmen are greedy, trade unions are grasping, consumers are spendthrifts, Arab sheiks have raised the price of oil, and weather is often bad. All these can produce high prices for individual items; they cannot produce rising prices for goods in general. They can cause temporary ups or downs in the rate of inflation. But they cannot produce continuing inflation for one very simple reason: none of the alleged culprits possesses a printing press on which it can turn out those pieces of paper we carry in our pockets; none can legally authorize a bookkeeper to make entries on ledgers that are the equivalent of those pieces of paper......

“The recognition that substantial inflation is always and everywhere a monetary phenomenon is only the beginning of an understanding of the causes and cure of inflation.......

“If the quantity of goods and services available for purchases- output, for short-were to increase as rapidly as the quantity of money, prices would tend to be stable...... Inflation occurs when the quantity of money rises appreciably more rapidly than output, and the more rapid the rise in the quantity of money per unit of output, the greater the rate of inflation. THERE IS PROBABLY NO OTHER PROPOSITION IN ECONOMICS THAT IS AS WELL ESTABLISHED AS THIS ONE.”
-Milton Friedman, Free to Choose, A Personal Statement, Pages 252-254

“Let me point out, that the reason why we have too much printing and spending and too much printing of money is because you people want it. You and I...... If Congress has been voting higher and higher spending, Why? because it has been politically profitable for them to do it”.

https://www.youtube.com/watch?v=F94jGTWNWsA&t=27s

[Brian Griffin]

A 5% interest rate in a 10% inflation rate economy is a true bargain.

[Brian Griffin]

Corporations often have a lot of lay-abouts on their payrolls.

[Brian Griffin]

Just stop unnecessary price and wage increases!

If you want $22/hour at a McDonalds I might just buy a sandwich made and wrapped in another state at a supermarket and pay using an automated checkout machine.

[DAC21]

“Calif has over 560,000 ‘fast food’ workers.

Newsom created a UNION for such workers...

He also DEMANDED a starting wage of $22 an hour for those 560,000 fast food workers...

The first massive layoffs will be there-—mark my words”

I believe it. Soon in California the days of 24hr. take out like at Jack in the Box and Del Taco will be a thing of the past. In downturns 3rd shift is always the first thing to go.

[PTBAA]

Wow, if that happens we’ll be even closer to almost being in a recession!

[roving]

If the railroad workers go on strike in a few weeks, we will be in a world of hurt

[JLAGRAYFOX]

Yes...you are right on the money...Biden and the Democrat Party want to sink the USA as they aid China, Russia, North Korea, Iran, etc. Biden has successfully destroyed the USA military.....American boys & girls do not want to sign up and neither do the military academies have the number of students they need!!! Biden has given away our oil reserves. Sadly the American people are still asleep at the wheel.

Biden and his son Hunter are truly the 100% pawns of all of our enemies... Sad days for the once great USA!!!

[ProtectOurFreedom]

“You can count in Joe to really EFF things up” — or something along those lines.

[SaxxonWoods]

“There is absolutely NO fight against inflation!”

No fight from Biden, but the FED has already slowed it and will lower it. FED is just getting started and the effect is delayed.

[Trumpet 1]

Government spending is the current cause of American inflation.

[Grampa Dave]

Not all of the upcoming layoffs will be bad for America:

During a weekly employee meeting, Zuckerberg said,” If I had to bet, I’d say that this might be one of the worst downturns that we’ve seen in recent history.”

“Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg stated.

“Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn’t for you, and that self-selection is OK with me,” he added.

So Facebookers, do you leave now or with the rest of your fellow Woke Herd from November to next year?

[G Larry]

The Fed does not have the tools to overcome the economic devastation resulting from Biden's policies.

Biden's objective is to destroy the private sector to drive dependence on government.

This is Tyranny and Fascism.

[Grampa Dave]

The smart grocery chains and independents have been gearing up for this Governor Gruesome B$ for about a year.

They have ready to go entrees and veggies for lunches and dinners. You can pre order by phone or on line. Or order at the counter, get your fast order and go eat in your car or where ever. Of course they have high end sandwiches available for carry out.

The one surviving quality independent grocery store has more workers in its carryout deli, than they do in their produce or butcher sections combined.