Minimum wage would be $26 an hour if it had grown in line with productivity - CBS News
I don’t think so. The SS wage index takes into account wage gains which have lagged productivity gains which have accrued primarily to high paid executives and owners of capital.
Um, depends what you mean when you say a $10,000 bond. Typical usage I see is $10,000 is the principal, or face value or par value. That is the amount repaid on maturity. Since that is a date in the future, a $10,000 bond (with market rate coupons) is generally worth less than $10,000. Exceptions would be negative interest rate environment. Higher than prevailing rate coupons can also drive the price above par. Market scarcity combined with regulatory constraints can raise price above par too.
I think if the coupon rate = market interest rate then price is at par (maybe just at inception?). If coupon rate > interest rate then premium and vice versa, but I am a mere P&C actuary so this may be off
Nope, that’s the gist. There is a blue statement reporting convention that separates the accrued interest on the coupons into a separate column, so there is a little noise between the purchase price (most bonds aren’t bought exactly at issue) and the book value, but otherwise, that’s the high level idea. Bond traders can tell you the minutiae and where my generalizations fail.
not you bringing politics into this
In the first 10 years I worked, there was only one year when inflation was BELOW 8%: in half of those years it was over 10%. Most employers just kept raising salaries and prices to keep pace so inflation was perpetuated. Took punitive central bank intervention and a nasty recession to break the cycle.
I hope our central bankers are more skillful than they were 40+ years ago and can help break inflation before employers and employees accept it as the norm. At that point, only drastic actions work.
Gas and food prices are up because of the war in Ukraine.
Car prices are up because of a chip shortage that is beginning to ease.
House prices are up because people shifted to working from home.
Labor costs are up because the pandemic shut down immigration to the US.
The Fed raising interest rates i don’t think will address much other than housing.
Well if it causes a recession then maybe they’ll lower demand enough across the board to bring prices down
Why are most savings account rates still so close to zero?
something something corporate greed
I agree completely. All they can do is crush the housing market and stock market. That’s just going to wipe out wealth and not stop inflation. People are going to be ultra unhappy. Our government can’t seem to stop shooting itself in the foot.
I hope you don’t honestly believe those BS talking points.
All of those are contributing factors. Basically none of them are the primary factors for inflation in those sectors.
I’ll guess that reduction in immigration was in the hundreds of thousands while early retirements were in the millions.
I read 2 million fewer immigrants. We have about 4 million unemployed and 8 million unfilled jobs.
I hope you have something useful that refutes it.
Maybe gas and refinery capacity is a primary issue on gas prices. Available labor is down due to COVID as well as Trump admin rules. Cars sold are down while prices are up and cars sit in lots waiting for parts.
And plenty of articles like this:
But its all Biden and Democrat spending in your mind I guess.
You can add stimulus money/quantitative easing raising demand during a supply shortage to basically all of these. Increased labor costs add to all other items.
New build house prices were up due to lumber scarcity related to COVID shutdowns. Existing prices went up due to lack of new build units, low interest rates.
Gas is significantly due to loss of refinery capacity (COVID) but also lack of investment in fossil fuel extraction/refining over the last 18 months due to Biden admin regulatory environment.
Car prices is largely chip shortage.
Labor shortage is stimulus money allowing people to not work plus COVID related retirements/shifting of priorities. Immigration runs way behind these.
Food is a lot of other items coming in. Labor costs, supply chain disruption, energy costs; it all gets passed on at the grocery store.
The Ukraine war is just a kicker on the end for these. Inflation had already been too high for 9 months before Putin set it off. But of course it was “transitory”, right?
Huh?
Don’t forget these. The supply side goosing by the Fed and government policy did a lot of the damage. The chip shortage just made it particularly bad for cars by restricting supply even more than the normal COVID scrambling of supply chains.
Any source for the Biden regulatory environment? Forbes and this energy sector expert have a completely different explanation supported by facts.