What If “Transitory” Inflation Is Here To Stay?

What If “Transitory” Inflation Is Here To Stay? By John Rubino.

One of the emerging trends in the almost-post-covid economy is companies suddenly having to pay way up to find new employees. Restaurants, truckers, even Uber and Lyft, are now struggling to track down and re-hire the people they and their competitors shed during the lockdown. …

US labor shortages. Higher wages are needed. So it begins.

A labor shortage is a great equalizer, moving money from the upper reaches of society down to people who both deserve and need it. So going forward, a rising number of Americans should be able to pay their bills, including their back rent, without government aid. Better late than never.

But with official inflation already above the conventional wisdom’s safe target range — and with the financial markets banking on government promises that current inflation is “transitory” — what happens when 20% wage increases collide with soaring commodities [prices]?

Imagine what closing off the West to third world immigration would do for wages and income equity in the West. Calling Mr Otis.