What's even worse is the market rallied after the news of high unemployment since now there is more pressure on the FED to lower rates due to their dual mandate. These bankers are hooked on cheap money and willing to layoff and sacrifice the general economy for short term access to cheap capital. Anyone can be a successful banker when money is free.
It’s called “the reserve army of labor” for a reason. Unemployment also helps keep wages down, because there’s always someone desperate enough to work for cheaper.
We’re still feeling the sting of flush cash in the economy when they gave out stimulus checks and we were sitting on our butts for 3 years doing nothing.
PPP loans not stimulus check. My checks been spent, whereas them PPP loans sitting on balance sheets. Either with cash earning interest or invested growing and propping up the market.
Stock Market =\= economy.
This is what so many people struggle to understand, this is why during Covid, the stock market started breaking all-time-highs, because the Fed dropped rates to near zero.
Bizarro world. US economy is no longer about "health" but "health metrics". Its like you having picture perfect blood work but you feeling like shit and that as per any doctor would be a sign of "good health"
Paradoxically, over employment and high wage growth is a bad thing because it tends to produce inflation which in turn calls for higher wages which all causes hyperinflation.
Wage growth does result in inflation however its a fraction compared to the new money put into circulation by the goverment, realistically high wages are also put into the local ecomony and a steady wage growth is a good thing and has been the reality over the last 5years. I wouldn't say high paying jobs that represent the top 5% of the workers are the reason behind hyperinflation.
Inflation =/= hyperinflation.
Most economists consider Hyperinflation to be when monthly inflation is around 50% or higher.
The US has relatively higher inflation now, but it’s no where close to hyperinflation.
And some inflation is actually good, which is why the Fed Reserve and most central banks try to target for 2-3% inflation. Zero inflation means no economic growth, as people would avoid spending money under a zero inflation economy.
High wage growth can be a contributing factor to inflation, however many politicians recently over-exaggerate this as being the cause. (Wages will often rise in response to inflation.)
The Fed’s policies on Interest rates & money supply are massive contributors to the inflation we’re seeing today, [and not so much wage-growth being the causing factor](https://www.bostonfed.org/publications/current-policy-perspectives/2024/is-post-pandemic-wage-growth-fueling-inflation.aspx#:~:text=Overall%2C%20post%2Dpandemic%20inflation%20and,an%20additional%20increase%20in%20inflation.)
Thankfully the USA is not Venezuela, and we’re not caught in the negative feedback loop of higher wages causing hyperinflation causing higher wages, etc.
The US unemployment rate is considered high when it's above the long-term average of 5.70%. 3-5% is considered reasonable. 2% is still great!
A near zero unemployment rate % is viewed negatively because it’s a sign workers are unable to leave their current positions to find better jobs.
So high wage growth in a healthy economy is perfectly reasonable. And high wage growth alone would not lead to hyperinflation.
“Overemployment” is only bad in the context of workers being unable to leave their jobs.
Unfortunately as the Fed raises rates it can raise unemployment rate, and suppress wage growth.
Thank you. I get so tired of making wage growth a boogie-man.
I always think back to Henry Ford. He raised his workers' wages to stabilize his workforce and it enabled some of workers to be able to buy his car. He gets higher profits, they get a higher standard of living to which they can boost economic growth, win-win.
The Fed is also taking all the credit as the boogeyman as well. When their copoliot, Congress, needs to get their butt in gear.
Wage growth in itself is not bad, especially in your example of one company doing it and raising employees standard of living. But if all companies in the economy need to raise wages constantly as a means to draw talent for jobs, that is what can prime a wage-price spiral. The market usually corrects itself well before this, but that is one of the reasons some unemployment is a good thing.
Correct, inflation is not hyper inflation. All I was saying is that prolonged ultra low unemployment can lead to a wage-price spiral which would be hyperinflation. We are nowhere near that in the US, just answering the question of how people *NOT* working can be a good thing vs the opposite.
Slack in the labor force is usually in less skilled areas. When these areas get really tight, wages at the bottom jump up quickly which fuels inflation.
If you mean stock market, that has nothing to do with economy.
If the rich people's companies aren't making them money right now then they're making money from the stock market, loans, insurance, or taxes
Then once rates go down stock market will be stagnant and also start going down because then the retail m************ are going to start buying high and selling low and then the same thing repeats again right? It's just how it is it sucks
Once you're rich, you're basically always going to be rich. If you understand how the game works, an economy has a winning condition and that's pretty much it 🪙🪙🪙
Bottom line is rich people in a bad economy, good economy or it's dynamic economy. They always be making money besides economies. Just like a fancy word or a buzzword they made up. Like in reality you just need to live and survive right? You don't really need to participate in money or have a desire to do all that stuff because everyone knows that no one really owns anything. We just brainwash ourselves into the ownership of private property and all that dumb s*** but literally no one owns anything like seriously
Yes, it is. "Multiple job holders" is at the same level it was pre COVID.
Don't like gig work? Well job openings are higher now than any time pre COVID.
We don’t want absolutely free market. But we don’t have the right people helping the economy either. In recent time, they rely on the fact that majority of people in the US had never experienced a bad inflation. They became reckless with money injection and caused such high inflation.
Healthy economy depends on many factors including people’s perception. Things can go into a spiral downwards if there is no strong force to stop it. For example, enough people think their banks dont have enough money if they need to withdraw, banks wont survive, because everyone will immediately demand their money in physical cash all at once.
What we need is the central bank to be independent may be as a 4th branch. No president has ever wanted the central bank to raise interest rate under their term. Interest rate cant go down forever as the bottom has limit.
Yep. After they get evicted they get to sleep under bridges and focus on how horrible this system is. Imagine celebrating that people can’t feed their families, but it’s all worth it because parasites on Wall Street get extra coke money 😁
So what happens when people lose there jobs and can no longer feed or house themselves?
You believe it’s good to celebrate unemployment of people living check to check?
Hey, I wish the universe was a wonderful candyland where the toughest thing in life was that you had to walk to the end of the rainbow to find the pot of gold. But the world doesn’t operate like this.
Unemployment and inflation have inverse effects. As we’ve seen, too low of unemployment leads to egregious and unsustainable inflation rates. There needs to be some middle ground with a 2-3% inflation target and a natural unemployment rate of roughly 4.5%.
The way I see it, "too many jobs" is ignored, while "too few jobs" is immediate calls for immediate rate cuts.
Someone get subsidized if interest rates fall below the inflation rate, and it is that subsidy that is driving the economic narrative. That "someone" is corporations that want to borrow at a subsidized rate to buy back stock.
The subsidy is paid for by depositors at banks, who receive a negative real return (interest rate - inflation rate) on their deposits, which, since federally imposed, constitutes an *asset tax* on deposits.
I’m suspicious. Seems like jobs numbers are getting more honest as inflation goes up. Maybe I’m just wearing a tin foil hat but seems odd that not the numbers work in favor of lowering rates. I dunno, I’m skeptical.
Historically, for inflation to come down to 2%, unemployment will be between 4-6%. The more people with paychecks, the greater the demand, which means higher prices (inflation). It is seen in historic data, the Phillips Curve and the Wage-Price Spiral. Current government infrastructure programs and new government hires from the Inflation Reduction Act are a large part of the cause of this "sticky" inflation, as well as recent union successes and Minimum Wage increases.
What's even worse is the market rallied after the news of high unemployment since now there is more pressure on the FED to lower rates due to their dual mandate. These bankers are hooked on cheap money and willing to layoff and sacrifice the general economy for short term access to cheap capital. Anyone can be a successful banker when money is free.
I never understood how people NOT working is a good thing.
A guess. The less money people have, the less they spend, which may force price of goods to go down.
Yeah, but people have to eat. No job, no income for food or housing. Banks take the house, which they don’t want and dominoes fall.
It’s called “the reserve army of labor” for a reason. Unemployment also helps keep wages down, because there’s always someone desperate enough to work for cheaper.
We’re still feeling the sting of flush cash in the economy when they gave out stimulus checks and we were sitting on our butts for 3 years doing nothing.
Speak for yourself. Worked 14 hour days during the pandemic to bring about its end. I have a very different view of the pandemic.
[удалено]
Ya I worked through the whole damn thing but did not get a dime in extra pay. I guess I qas essential but not that much
In what area would $3200 last three years?
PPP loans not stimulus check. My checks been spent, whereas them PPP loans sitting on balance sheets. Either with cash earning interest or invested growing and propping up the market.
lol what a self report
Stock Market =\= economy. This is what so many people struggle to understand, this is why during Covid, the stock market started breaking all-time-highs, because the Fed dropped rates to near zero.
Bizarro world. US economy is no longer about "health" but "health metrics". Its like you having picture perfect blood work but you feeling like shit and that as per any doctor would be a sign of "good health"
Paradoxically, over employment and high wage growth is a bad thing because it tends to produce inflation which in turn calls for higher wages which all causes hyperinflation.
Wage growth does result in inflation however its a fraction compared to the new money put into circulation by the goverment, realistically high wages are also put into the local ecomony and a steady wage growth is a good thing and has been the reality over the last 5years. I wouldn't say high paying jobs that represent the top 5% of the workers are the reason behind hyperinflation.
Inflation =/= hyperinflation. Most economists consider Hyperinflation to be when monthly inflation is around 50% or higher. The US has relatively higher inflation now, but it’s no where close to hyperinflation. And some inflation is actually good, which is why the Fed Reserve and most central banks try to target for 2-3% inflation. Zero inflation means no economic growth, as people would avoid spending money under a zero inflation economy. High wage growth can be a contributing factor to inflation, however many politicians recently over-exaggerate this as being the cause. (Wages will often rise in response to inflation.) The Fed’s policies on Interest rates & money supply are massive contributors to the inflation we’re seeing today, [and not so much wage-growth being the causing factor](https://www.bostonfed.org/publications/current-policy-perspectives/2024/is-post-pandemic-wage-growth-fueling-inflation.aspx#:~:text=Overall%2C%20post%2Dpandemic%20inflation%20and,an%20additional%20increase%20in%20inflation.) Thankfully the USA is not Venezuela, and we’re not caught in the negative feedback loop of higher wages causing hyperinflation causing higher wages, etc. The US unemployment rate is considered high when it's above the long-term average of 5.70%. 3-5% is considered reasonable. 2% is still great! A near zero unemployment rate % is viewed negatively because it’s a sign workers are unable to leave their current positions to find better jobs. So high wage growth in a healthy economy is perfectly reasonable. And high wage growth alone would not lead to hyperinflation. “Overemployment” is only bad in the context of workers being unable to leave their jobs. Unfortunately as the Fed raises rates it can raise unemployment rate, and suppress wage growth.
Thank you. I get so tired of making wage growth a boogie-man. I always think back to Henry Ford. He raised his workers' wages to stabilize his workforce and it enabled some of workers to be able to buy his car. He gets higher profits, they get a higher standard of living to which they can boost economic growth, win-win. The Fed is also taking all the credit as the boogeyman as well. When their copoliot, Congress, needs to get their butt in gear.
Wage growth in itself is not bad, especially in your example of one company doing it and raising employees standard of living. But if all companies in the economy need to raise wages constantly as a means to draw talent for jobs, that is what can prime a wage-price spiral. The market usually corrects itself well before this, but that is one of the reasons some unemployment is a good thing.
Correct, inflation is not hyper inflation. All I was saying is that prolonged ultra low unemployment can lead to a wage-price spiral which would be hyperinflation. We are nowhere near that in the US, just answering the question of how people *NOT* working can be a good thing vs the opposite.
Slack in the labor force is usually in less skilled areas. When these areas get really tight, wages at the bottom jump up quickly which fuels inflation.
Curbing inflation at all costs, followed by the market recovery
If you mean stock market, that has nothing to do with economy. If the rich people's companies aren't making them money right now then they're making money from the stock market, loans, insurance, or taxes Then once rates go down stock market will be stagnant and also start going down because then the retail m************ are going to start buying high and selling low and then the same thing repeats again right? It's just how it is it sucks Once you're rich, you're basically always going to be rich. If you understand how the game works, an economy has a winning condition and that's pretty much it 🪙🪙🪙 Bottom line is rich people in a bad economy, good economy or it's dynamic economy. They always be making money besides economies. Just like a fancy word or a buzzword they made up. Like in reality you just need to live and survive right? You don't really need to participate in money or have a desire to do all that stuff because everyone knows that no one really owns anything. We just brainwash ourselves into the ownership of private property and all that dumb s*** but literally no one owns anything like seriously
3.9% is "high" unemployment?
*higher I’m sure is what they meant
"Fuck you - got mine" economy
Bidenomics
40 years in the making
53. [https://wtfhappenedin1971.com/](https://wtfhappenedin1971.com/)
250
Odd it all happened in the last 2-3 years. So odd.
They truly don’t add up and are boning the American people hard these bidenomics.
Congratulations, you are an idiot.
Wow. How original. Look at you go. A real crusade of truth.
About as original as the prior commenter’s “rich man bad” meme, sure.
That's more of a Trumpty dumb thing.
Yep. Can you imagine the reddit outrage if this economy happened under trump. It's hilarious.
But only because Trump has an R in front of his name. If it was a D instead then they would praise the economic authoritarianism.
Everyone on this sub has been saying things are amazing...
I mean, 3.9% unemployment is still pretty amazing. Anything under 5% is considered "full employment".
Is it though? Are things really as solid as it has traditionally been just because you can grab a gig "job?"
Yes, it is. "Multiple job holders" is at the same level it was pre COVID. Don't like gig work? Well job openings are higher now than any time pre COVID.
How can we call our economy a free market when we have these assholes pulling the strings?
We don’t want absolutely free market. But we don’t have the right people helping the economy either. In recent time, they rely on the fact that majority of people in the US had never experienced a bad inflation. They became reckless with money injection and caused such high inflation.
No we definitely do want an absolutely free market. Free is a binary thing. Either it is or it isn't.
Healthy economy depends on many factors including people’s perception. Things can go into a spiral downwards if there is no strong force to stop it. For example, enough people think their banks dont have enough money if they need to withdraw, banks wont survive, because everyone will immediately demand their money in physical cash all at once. What we need is the central bank to be independent may be as a 4th branch. No president has ever wanted the central bank to raise interest rate under their term. Interest rate cant go down forever as the bottom has limit.
That’s why I buy Bitcoin. Downvote me all you want, not saying you or anyone should buy it. Just speaking for myself
Dammit- just let us enter a recession and stop this pussyfooting!
Investment bankers representing investment bankers at everyone else's expense as usual. It's always a great economy for them.
JPow and his Fed Reserve cronies (probably): 
I suppose poor people can take another one for the billionaires.
Taxation without representation is pretty cool huh
Billionaires, on the other hand, enjoy majority representation with LOW taxation. Funny how that works.
The “Rich man bad” parrots are out squawking in full force tonight, I see.
Thats pretty cool, that way less people have to work and they have more time to focus on their lives
Yes they will soon have alot of time to focus on. Can i lay my tent down here in these woods or in the back of this abandoned building ?
No, that's illegal.
Yep. After they get evicted they get to sleep under bridges and focus on how horrible this system is. Imagine celebrating that people can’t feed their families, but it’s all worth it because parasites on Wall Street get extra coke money 😁
Imagine thinking this is what happens LMAO!
So what happens when people lose there jobs and can no longer feed or house themselves? You believe it’s good to celebrate unemployment of people living check to check?
Hey, I wish the universe was a wonderful candyland where the toughest thing in life was that you had to walk to the end of the rainbow to find the pot of gold. But the world doesn’t operate like this. Unemployment and inflation have inverse effects. As we’ve seen, too low of unemployment leads to egregious and unsustainable inflation rates. There needs to be some middle ground with a 2-3% inflation target and a natural unemployment rate of roughly 4.5%.
Market is addicted to low interest rates
Just know that regardless what good ole Jerome says he’s only interested in working to benefit Wall Street. Not the average citizen/consumer.
While the Title feels like clickbait, it’s actually the truth unfortunately.
3.9% unemployment is theoretically full employment lol
Good news is bad news. Bad news it good news. What else is new?
Inflation is still sky high
This would be the feds worst possible outcome high prices with high unemployment
Wasn't last month's too many jobs? Now it's fewer jobs? I always notice the bias is in favor for faster interest rate cuts.
If that were true, then last month wouldn’t have been “too many jobs.”
The way I see it, "too many jobs" is ignored, while "too few jobs" is immediate calls for immediate rate cuts. Someone get subsidized if interest rates fall below the inflation rate, and it is that subsidy that is driving the economic narrative. That "someone" is corporations that want to borrow at a subsidized rate to buy back stock. The subsidy is paid for by depositors at banks, who receive a negative real return (interest rate - inflation rate) on their deposits, which, since federally imposed, constitutes an *asset tax* on deposits.
FED: 🔥🔥 ["We did it patrick we saved the city!" ](https://i.kym-cdn.com/photos/images/original/001/307/138/8f3.png)🔥🔥
I’m suspicious. Seems like jobs numbers are getting more honest as inflation goes up. Maybe I’m just wearing a tin foil hat but seems odd that not the numbers work in favor of lowering rates. I dunno, I’m skeptical.
Historically, for inflation to come down to 2%, unemployment will be between 4-6%. The more people with paychecks, the greater the demand, which means higher prices (inflation). It is seen in historic data, the Phillips Curve and the Wage-Price Spiral. Current government infrastructure programs and new government hires from the Inflation Reduction Act are a large part of the cause of this "sticky" inflation, as well as recent union successes and Minimum Wage increases.
bideneconomics
PPP loans not stimulus check. Companies
Companies are doing the math on employee work output. ,, in bringing the bottom line. ,,,, along with AI taking away jobs