The 2022-23 Economic Crisis Megathread

[celedhring]

I just got a raise above inflation, should I feel guilty for ruining the economy? 

[Tamas]

I just got a raise above inflation, should I feel guilty for ruining the economy? 

Yes. It's definitely not the fault of central bank policies of the last decade.

[Admiral Yi]

Yes. It's definitely not the fault of central bank policies of the last decade.

That's not the question he asked.

[Tamas]

Yes. It's definitely not the fault of central bank policies of the last decade.

That's not the question he asked.

Yes.

[Josquius]

So... Interest rates up, inflation high etc...

But bank accounts still seem to offer virtually zero interest?

]

Nope. Only people on the outside would say that, but they're generally ignorant on the country.
My advice: go to Holland or the Nordics. They have a state that is actually performance, when compared to Belgium.

From what you said it sounded good.
That would be my preference but

[Sheilbh]

Interest rates are up but base rate is still only 1.75% which is historically very low?

[Tamas]

I have recently switched my savings account to Chase where I am earning a MASSIVE 1.5% interest.

[Tamas]

Did the rules on what constitutes a job changed recently in the US? The stock market ain't going to like this:

July nonfarm payrolls 528K, Exp. 250K

[Berkut]

I just got a raise above inflation, should I feel guilty for ruining the economy? 

Of course not.

I am sure I will give raises above inflation to my best people. 

But that will be because they are talented and I want to keep them. They get good raises regardless of what inflation is at.

The question is whether it makes sense to give people raises solely on the basis of the rise in inflation.

Should the "base" raise for everyone be based on the floor of the CPI in some fashion?

1. Is that good public policy from the standpoint of managing inflation?
2. Is that even feasible from the standpoint of running a viable company?

[crazy canuck]

Is it good public policy to have declining real incomes? Probably not.

[Habbaku]

Is there a country in the world whose public policy is to have declining real incomes?

[Berkut]

Is it good public policy to have declining real incomes? Probably not.

Glad it is so simple.

[crazy canuck]

Is there a country in the world whose public policy is to have declining real incomes?

I don't think so, at least I hope not. I was just answering one of Berkut's questions.

[crazy canuck]

Is it good public policy to have declining real incomes? Probably not.

Glad it is so simple.

Well, you did ask a pretty simple question.

[Berkut]

Is it good public policy to have declining real incomes? Probably not.

Glad it is so simple.

Well, you did ask a pretty simple question.

ACtually, it wasn't that simple at all. You reduced it to something simple so you could provide a pat answer that doesn't advance the discussion or mean anything.

" 1. Is that good public policy from the standpoint of managing inflation?"

That is not a simple question at all, and noting that declining real incomes is generically undesired doesn't answer it even a little bit. In fact, it is a stupid response that ignores the actual complexity of the problem in favor of a strictly political agenda that is paper thin.