NO WAGES FOR YOU!
Mar 08, 2023ā¢4 minā¢Transcript available on Metacast Episode description
Wages are "sticky". Once raised, they tend not to drop. Wages and benefits are also the largest cost a business has to cover.
Yes, inflation is hitting our wallets. And further squeezing a huge swath of the American public.
šš¼ 50% of Americans do not own a single share of stock, or an index fund, mutual fund, or ETF.
šš¼ 40% of Americans report that they could not come up with $400 in the event of an emergency.
šš¼ More American than ever are reporting living paycheck-to-paycheck, including 6-figure households
šš¼ Credit card balances are increasing š
šš¼ Household savings are decreasing š
š” side note: these households need help w/lifestyle mgt, budgeting, planning, and cash flow / cash mgt
Raising rates full-force, and as history shows - to the point of overshooting and "breaking something":
ā
will accelerate market selloff
ā
will send demand lower
ā
will increase unemployment
And while it may work to:
ā
temper, slow down, decrease inflation
ā
help the American public with household costs
ā
help cool down a hot real estate market
ā
help deflate asset bubbles
It also functions to help corporations and businesses in this one massive way:
ā
It helps keep them from having to raise wages further.
And that hits the bottom line.
