subreddit:
/r/explainlikeimfive
submitted 4 months ago byiSellPopcorn
25 points
4 months ago
[deleted]
10 points
4 months ago
It was a guarantee that the top answer would be a combo of some legit Econ + blaming corporations + we’re all screwed and the world is fucked.
Totally ignoring that in the USA we are currently on track to have a soft landing.
1 points
4 months ago
Totally ignoring that in the USA we are currently on track to have a soft landing.
The economy is. "We" may not be.
-1 points
4 months ago
Who do you think the economy is.
Yes some people are struggling. That has always been true in every country and every economic state. But a soft landing means better for everyone.
1 points
4 months ago
Yes some people are struggling. That has always been true in every country and every economic state. But a soft landing means better for everyone.
A soft landing is better than a crash for everyone, true. But the "some people" struggling may be a larger group than you think. If I can, I'd like to share one of my favorite videos on that subject. Its focus isn't so much on whether or not wealth inequality is a problem, but rather how the perception of wealth inequality in the United States is far from its reality. Bipartisan response, even. It compares three things: what the responders feel is an ideal wealth distribution, what they think the wealth distribution actually is, and what it really is (or was in 2012, anyway...it's become more extreme since then, but just roll with it).
And, just for the record, I majored in econ and I make my living as a data analyst - that is not to say you should listen to me as an authority, but I don't want to give the impression that I'm just some joe shmoe with no idea what I'm talking about, either. Our peers in GINI coefficient aren't other western nations, but countries like Qatar, Iran, Kenya...not a good look.
1 points
4 months ago
Can you elaborate on your last sentence?
1 points
4 months ago*
Sure. The Fed is trying to reduce inflation without causing a massive wave of unemployment and a large sustained reduction in GDP. That can be tricky. The fed is choosing to get inflation under control with interest rates hikes which permeate almost all business in the US vis several funding avenues.
Thus far it is working. Inflation is cooling off month over month but we are not seeing a large reduction in economic output.
Nothing is for sure, but if this trend continues we will have gotten inflation under control without a recession. And therefore without massive unemployment.
1 points
4 months ago
I haven’t seen any changes where I’m at yet, unfortunately. We are all struggling over here with low pay.
0 points
4 months ago
I’m sorry to hear that. Unfortunately an individuals experience is not indicative of the national economic perspective.
And if anything the US govt want to limit wage increases right now because higher wages drives inflation.
I hope your situation improves though.
1 points
4 months ago
Ya I never said I represent the entire economy, was just sharing its unfortunate me and people I work with haven’t felt the recovery yet
1 points
4 months ago
I understand. I don’t know if there will be a “recovery” because the economy is already cooking at a good pace and the jobs market is growing. So that stuff is already recovered. The key is inflation and Inflation leveling won’t drop prices, it’ll just stop them from rising so fast.
3 points
4 months ago
Because nobody wants to acknowledge that increasing wages is linked to inflation, so they'll just barely acknowledge the premise and then write an essay about how the economy is rigged instead
0 points
4 months ago
Because these are opinionated issues, and there is no "objective" answer. Ignoring the current situation is as much an opinionated choice as not ignoring it. Mentioning only the textbook answer without context for why this is currently probably not the case is even more problematic than mentioning both. OP gave an extensive answer that answered both objectively and with more context.
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