Statistics Canada says income gap hit record high in first quarter
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To my understanding the Philips curve doesn’t even depict an expected increase in unemployment due to monetary stimulus. It depicts a relationship between (lower) unemployment and (higher) wages, and therefore at some level of (low) unemployment, (higher) inflation, due to people having more money to spend. In the short run. This is in relation to government stimulus (Keyensian policy) that lowers unemployment. It says that stimulus can lower unemployment at expense of higher inflation. Not that stimulus leads to unemployment. In fact rising unemployment during stimulus is an example of the model breaking down over the long run, according to what’s written here.
You expect corporate profits to revert to the mean with cooling inflation, but this year, within our current higher interest rate environment, with inflation near target, corporate profits are at an all time high.. Sorry no data at my fingertips for Canada but the processes are the same. They even say that margins to GDP are at all time high. If prices rose because workers had more money in their pockets chasing the same goods due to stimulus, we wouldn’t see profits rise significantly more than wages. We wouldn’t see margins increase. This therefore can’t be wage-driven inflation. Which also means the Phillips curve doesn’t even apply here. I don’t know what else to tell you, but looking at BoC policy and population, without factoring in the market power of large firms in every consolidated market to set prices is bound to lead to incomplete conclusions and predictions. That’s kinda like considering that (level of) competition doesn’t have real effect on prices, irrespective of other variables.
Sorry I meant stimulus increases inflation, which increases the demand for labor to absorb the new money supply.
Wages arent going up due to immigration, thats my whole point. We also see capital shallowing.
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I agree with the sentiment, but I’m getting tired of the “eat the rich” slogan.
Unless someone is gonna go full Luigi, the reality is more like “reform tax and investment law!” which sounds way less cool, but way more attainable.
Like I said, I agree, but “eat the rich” doesn’t seem actionable. We can vote people in to change those stupid laws in the next election cycle. “Eat the rich” doesn’t have a clear next step.
I appreciate the thoughtful reply. However, I believe you have misunderstood my intentions towards a path forward. Allow me to clarify.
I am saying the 1%, in a madness driven fit of misguided self-interest, lead us inexorably to a world that has exceeded our planetary boundaries and must collapse due to its unsustainable nature. 8 billion people and counting on a finite planet that is degrading rapidly due to pollution, resource depletion and climate change, to name a few, is going to have A LOT of hungry people.
In this brave new world, famine will be a more prevalent phenomena. There is a reason why Bill Gates, Blackrock and everyone else are huge holders of farmland. It’s why Russia wants Ukraine. As Leonard Cohen once observed, “Everybody Knows”.
I am saying, when you, your family and your community are priced out of food due to multiple simultaneuous global breadbasket failures due to climate change occur, here is a simple and just solution - eat the rich.
Dry rubbed, woodsmoked, char-grilled rich people. It’s what’s for dinner. I suggest an oil rub with cumin, smoked paprika, cayenne, garlic powder, mustard powder and onion powder. Cook it low and slow around 225F.
Doesn’t matter if you are their fitness trainer, gardener, handyman or private security or just some dude who never met them until your fateful meal. Eat hardy while you can.
Bon appétit!
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It’s hard not to be jaded. In the past few decades it seemed like we might be able to make progress on climate change. But now we’ve fallen into a weird right wing rut, where people seem to vote squarely against their own best interests.
I dunno. I think everyone was implicitly on board with neoliberalism for a couple of decades, and now they find themselves poorer and lower status than before. So they blame the trappings of big-L liberal parties, scream that they want woke to end, and shoot themselves in the foot.
But yeah. I gotta hope!
people see to vote squarely against their own best interests<
So much of this it is unbelievable. I have a buddy who has been unemployed his whole life, lives with his mom, who both rely extensively on physical and mental health services while both collecting disability pay. He is also bisexual. He is a trump supporter and votes conservstive in every level of election. I literally cannot comprehend it.
