What Inflation in 2022 Will Teach Us About Capitalism
It’s encouraging that the bond market expects inflation to barely exceed 2% five years from now and the Fed’s interest rates not to rise even that high.
Labor’s share of GDP held stable at somewhat higher than 60% for the five decades after World War II. But it started to decline sharply after the dotcom bubble burst in 2000 and fell further after the financial crisis in 2008.
For several years under President Barack Obama, part-time workers’ wages lagged far behind those of full-time workers, and also behind inflation
This malaise led to populist anger and the ascent of President Donald Trump.
Data produced by the Federal Reserve Bank of Atlanta show a sharp decline in real wages.
Since the pandemic, margins now surging back to reach a level of profitability never before seen.
The story of inflation in 2022 will also be the story of whether the regime of capitalism is really changing and returning to an arguably healthier balance.
John Authers Bloomberg 27 December 2021
Factor-price equalization - Faktorprisutjämning
https://www.internetional.se/factorpricequal.htm
2022: Regime Change for the Global Economy?
John Authers Bloomberg 23 December 2021
https://englundmacro.blogspot.com/2021/12/2022-regime-change-for-global-economy.html
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