I agree that it won’t last, but I think exactly the opposite will happen: with wages going up, people will spend more money, which will increase the profits of businesses, who will use the profits to hire more people to keep up with the increased demand.
Retail shelf space is capital. If consumers empty shelves twice as fast, the return on shelf space-capital will double (assuming the markup doesn’t change). It’s not the Fed raising rates, it’s the market over-bidding the Fed.
If the Fed were able to stop these movements, our economy wouldn’t be as bubbly as it is.
Retail shelf space is capital. If consumers empty shelves twice as fast, the return on shelf space-capital will double (assuming the markup doesn’t change). It’s not the Fed raising rates, it’s the market over-bidding the Fed.
If the Fed were able to stop these movements, our economy wouldn’t be as bubbly as it is.