mrpoops t1_j18urtr wrote on December 22, 2022 at 3:03 PM

Reply to comment by aquarain in Leaked internal document shows Amazon expects a soft landing for the US economy and little chance of a recession, a rosier outlook than many other forecasters by Sorin61

We have full employment and wages went up some. If inflation is at 10% and wages go up 5% then the real world economic impact of inflation is only roughly 5%.

So…no. It wasn’t gonna crash the economy.

aquarain t1_j18y7kz wrote on December 22, 2022 at 3:27 PM

What you describe is "stagflation". We tried it in the 80's and yes it will crush the economy. Also, 5 points is absolutely brutal to the poor.

mrpoops t1_j190dhn wrote on December 22, 2022 at 3:42 PM

Yeah, it’s absolutely bad for the poor. But so is basically everything else. The world is bad for the poor.

Inflation isn’t good. But post-pandemic economic ripples and a war in Europe are the root cause. Not an underlying economic problem like 2007-2009.

aquarain t1_j193pht wrote on December 22, 2022 at 4:04 PM

Letting inflation get out of control is absolutely an "underlying economic problem" that can take years of austerity to repair.

Your focus seems to be on conservative media blaming Biden for having to cure the economic problems that began and sprung out of decisions made before he took office. On that I agree. He was set up. Inflation had been rising and accelerating since May of 2020, before he was even elected. It was further aggravated by a great deal of helicopter money before he sat in the big chair. It's not his fault. And frankly getting inflation under control isn't to his credit either, except from discipline to not push for more stimulus in an inflationary economy. That job is mainly handled by the Federal Reserve and he didn't appoint them. But Presidents get credit or blame for the economy anyway.

It's definitely post pandemic ripples and war in Europe. And QE+ZIRP. We seem to be transitioning to more of a saver economy now than an excess credit consumption one. I think long term that's best for everyone.

mrpoops t1_j196q94 wrote on December 22, 2022 at 4:24 PM

Sounds like we mostly agree. Merry christmas dude.

thedaidai t1_j18xhbm wrote on December 22, 2022 at 3:22 PM

Except higher wages tend to fuel acceleration of inflation. Yes, it absolutely could have.

EDIT: lol at the downvotes. It's called the Wage-Price Spiral. Look it up dumbasses it is a very basic macroeconomics concept