We're supposed to get excited for things getting worse more slowly?
... Alright, I guess I'll take it.
this post was submitted on 31 Aug 2023
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Your instinct is correct, don't dismiss it. The Fed's goal with interest rates was to reduce the crisis of increased employee leverage by pushing corporations to reduce their workforces. That means making a lot of regular people suffer to keep the value of the owner's capital maximized. Protecting the ego scores of a relatively tiny number of people by actively harming most everyone else in tangible, basic human needs terms. If that isn't sociopathic cruelty, I don't know what is.
When there is a national crisis, note our middle managers in Washington don't say we need to protect our society, they say we need to protect our beloved economy. An economy is supposed to be a mere tool better distribute goods and services for the benefit of a society. Ours has metastasized to the point our society lives in service to our economy, which is perverse but the tragic, morbid reality.
The goal of the fed is to increase the net worth of the owners, full stop. That almost always comes at the peasant's, or what the oligarchs would consider their livestock's, expense.
Whenever the Fed is happy, it's almost always bad news for non-wealthy Americans, despite all the self-hating, capitalism true believer peasants that have deluded themselves into believing the lie that the owner's success is the peasant's success. It's not. Trickle down economics was an intentional grift at its inception, and that grift has become our economy's core philosophy.
For any young people unaware, the trickle down economic fairy tale is "funnel as much of the nation's generated capital to the already wealthy as possible, and one day they'll whip their dicks out and urinate golden showers of prosperity down on all the peasants." They were kind of conning and insulting their capital battery peasants at the same time!
Lmao this is what happens when your entire understanding of economics comes from leftist TikTok
Enlighten us.
They aren't worth your attention. Just a true believer capitalist troll here to say everything is fine and to use ad hominems if you recognize that it isn't.
I love the the user note feature here, really handy for marking trolls. Fortunately not that many here yet, probably still at Spez's trough. Most people that came here are awesome.
Cooling inflation is things getting better. A little inflation is not bad.
There was never a world where we would deflate back to any reasonable dollar value.
The stock market cannot handle deflation, as it would be more valuable to hoard cash than to invest. So the rich would lose tons of value.
Almost nothing will ever really get cheaper.
The main issue is that wages haven't really kept up with inflation and the fed is actively driving unemployment to force wages to remain low. This results in real loss to anyone whose income doesn't primarily come from their portfolio.
actively driving unemployment
Holy shit someone should tell the labor market, since it's competitive as fuck right now.
Weird that none of this "driven unemployment" is showing up anywhere.
A cooling job market is likely forstalling further rate hikes this year. Feel free to have your uninformed opinion but the fed has stated that the purpose of rate hikes is to relax an inflexible labor market, which means increasing unemployment.
Fed is hiking rates to make borrowing less attractive which hurts new job growth and limits expansion.
The inflexible labor market is a result of demand for labor vastly exceeding supply, largely due to shitloads of people cashing out and retiring during COVID, and the Fed is getting that closer to parity.
I say "getting closer to parity" because we're still adding hundreds of thousands of jobs per month on net in a market that is as favorable to labor as any in around 80 years.
The problem with deflation is that it encourages saving rather than consumption, leading to an economic depression.
The rich would be perfectly fine. People taking out loans would be screwed.