Another terrible Bloomberg Op Ed: https://www.bloomberg.com/opinion/articles/2022-04-12/fed-s-inflation-fight-could-use-a-slower-jobs-market
Some footnotes:
“The Fed view is that when there's too much of an imbalance between labor demand and supply, you get a dysfunctional market with too much turnover and pay increases that lead to a unacceptable level of inflation.”
Ok, time for some history. Real wages have been stagnant since the early 70s. Household wealth has been eroded ever since. Meanwhile, worker productivity increased 60%, and market indicies and corporate profit exploded.
Strange that only now, when wages have budged ever so slightly, we have “unacceptable” issues?
“Slowing job growth should lead to lower inflation over time because worker income won't be growing as much as it has been since the recovery began.”
Fun fact: most of the current inflation is profits rather than wages. By some measures, 60% of the current round of inflation is due to corporate profits, and not wages: https://mattstoller.substack.com/p/corporate-profits-drive-60-of-inflation
Simply put, corporations are charging more because they can. Market consolidation and weak anti-trust regulations have ensured there's not enough players, and whatever oligopolies remain can charge whatever the hell they like: https://www.wamc.org/commentary-opinion/2022-03-18/a-profit-push-explanation-for-the-current-inflation
“Given the Fed’s commitment to bringing down inflation, it’s going to need to see the labor market slow one way or another, even if a big contribution to rising prices has been supply chain constraints that eventually work themselves out.”
So why is this guy advocating for taking away your bargaining power in the labor market? Why isn't he considering anti-trust or other measures that would reduce corporate profits?
“Conor Sen is a Bloomberg Opinion columnist and the founder of Peachtree Creek Investments.”
Ah, there we go. His wealth depends on profits. Wages hurt his bottom line.
Beware of Wall Street propagandists, who wave around bunk economic data so they can make you work harder for less pay, so they can do less and become richer.