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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: ItsAllCyclical who wrote (82311)10/22/2023 12:31:03 PM
From: ajtj99  Respond to of 97984
 
Powell's hands are actually being tied by two factors that are flying below the radar - legal immigration and birth rate.

Boomers retiring are out-stripping the replacement workforce. This has caused employers to chase the same few available workers by throwing money at them. Add in the fierce private return of COLA, and you get sticky wage inflation.

Inflation is 98.5% correlated with wages, so if you want lower inflation, you need lower wages. To get lower wages, you need a larger workforce. To get a larger workforce quickly, you need a flood of legal immigration.

The low birth rate is not going to be solved easily. Gen Z does not have the same hopes and aspirations as their forefathers. That includes space like housing. These are people who are just fine sitting in an internet cafe or coffee shop working or scanning their Instagram feed. They also value experiences over stuff.