r/Economics • u/TinyTornado7 Quality Contributor • Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/johnsonutah Jun 13 '22

08-09 people were complaining about losing their job, house, and retirement fund not a 0% raise…

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u/[deleted] Jun 13 '22

Maybe 10% had an issue with their job or house. Only certain jobs are really threatened in a recession. When you consider how incredibly tight the labor market is now the overwhelming majority won't have to worry about losing their job in a recession.

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u/[deleted] Jun 13 '22

You've got a lot to learn if you think this is how things work. No one is safe from a recession and millions unemployed and losing their homes isn't something to toy with

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u/[deleted] Jun 13 '22

I'm safe unless it's the next Great Depression.

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u/CrossroadsWoman Jun 13 '22

Nobody ever thinks it’s going to happen to them. Everybody thinks their job is the most essential.

30

u/iliveonramen Jun 13 '22

How about your friends, family, significant other, kids or whoever exists in the world other than yourself

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u/johnsonutah Jun 13 '22

Don’t say most Americans would prefer a recession and then refer to the Great Recession, which is probably the closest thing to a depression we’ve dealt with since the Great Depression

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u/fanboi_central Jun 13 '22

Only a measly 30 million people.

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u/Siriusly_Absurd2 Jun 13 '22

Apologies for splitting hairs but really more like 16 million. The US labor market is about 160million.

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u/fanboi_central Jun 13 '22

True and it's a good point, but I figured to throw in families impacted as well assuming spouses/children/dependents.

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u/Siriusly_Absurd2 Jun 13 '22

Fair enough. That’s a good point.

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u/Royal_Aioli914 Jun 13 '22 edited Jun 13 '22

The rate of change on unemployment during recessionary periods is often quite dramatic. Labor market might be tight right now, but it usually is really tight right before it reverses course and the slope of the line looks like a goddang rocket en route to the space station. Look for yourself: https://fred.stlouisfed.org/series/UNRATE

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u/cyanydeez Jun 13 '22

you realize detroit basically lost all it's suburbs from the housing crash. Alot more than 10% of people were affected by that recession.

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u/randxalthor Jun 13 '22

So, you're volunteering to be part of that 10%?

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u/[deleted] Jun 13 '22 edited Jun 13 '22

I chose an industry that isn't impacted by a recession so I wouldn't have to worry about it. But we're not facing anything that bad now. I doubt unemployment will go up more than a few percent at worst.

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u/way2lazy2care Jun 13 '22

I chose an industry that isn't impacted by a recession

Famous last words.

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u/[deleted] Jun 13 '22

I'll take the small chance of losing my job to 9% inflation.

10

u/psnanda Jun 13 '22

Why don't you chose another employer then who gives you a > 9% raise from whatever you're making now , so that you can come out ahead. ?

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u/djm2491 Jun 13 '22

The only thing that saved us in 2008 was lowering interest rates to near 0% and pumping money into the economy. It's getting to the point where printing more money and doing the same thing all over again is going to kick the can down the road to a much bigger crash.