False, market collapses are great for people with large amounts of capital who sold assets before the collapse and buy heavily because they can sit out the stabilization to sell at a premium.
And they're also good for people who don't own very much. You'll never convince me higher interest ratees aren't a good thing. What you could convince me of is ending the fed and letting the market set interest rates.
The reason the 90s middle class existed was because of the cooldown of the interest rates since the 70s. That was really the golden era of affordability versus labor wages in modern America. Until labor wages actually outpace inflation consistently again then no amount of interest rate hikes will fix market conditions.
Labor wages won't outpace inflation when the money supply keeps getting pumped up thanks to low interest rates. Raise the rates and wage growth will start to outpace inflation again.
Market collapses are a great thing for people who don't own anything.
False, market collapses are great for people with large amounts of capital who sold assets before the collapse and buy heavily because they can sit out the stabilization to sell at a premium.
And they're also good for people who don't own very much. You'll never convince me higher interest ratees aren't a good thing. What you could convince me of is ending the fed and letting the market set interest rates.
The reason the 90s middle class existed was because of the cooldown of the interest rates since the 70s. That was really the golden era of affordability versus labor wages in modern America. Until labor wages actually outpace inflation consistently again then no amount of interest rate hikes will fix market conditions.
Labor wages won't outpace inflation when the money supply keeps getting pumped up thanks to low interest rates. Raise the rates and wage growth will start to outpace inflation again.
Not an american but I'd like to ask: Would bringing back production work back to US ease the situation?