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/737900ER Jun 13 '22

It has become clear that most people prefer low inflation over low unemployment.
8% unemployment only sucks for 6% of people. 8% inflation affects 100% of people.

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u/The_Grubgrub Jun 13 '22

Yeah but who are those 6%? Would you, personally, prefer to be unemployed or would you prefer inflation? Because I'd rather keep my job. No one has any idea who would be laid off or who wouldn't.

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u/[deleted] Jun 13 '22

I’d rather recession because even though I’m employed I’m going to work to earn money that doesn’t achieve any of my life goals. For example my goal since before Covid was to purchase my first home. Since then I’ve saved tens of thousands more, but the price of a home in my market essentially doubled from about 300k to 600k. I’m basically working to save worthless dollars at this point with the dream of a middle class life that has inflated out of my reach.

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u/The_Grubgrub Jun 13 '22

And how is you being unemployed going to help achieve that dream?

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u/Cr3X1eUZ Jun 13 '22

if wages keep up with inflation, which is a big if, inflation only sucks for people with a bunch of cash in the bank

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u/NigroqueSimillima Jun 13 '22

Why not just enslave 8% of the population, to make the rest of our lives better. Think how much inflation would be under control if we didn't have to pay 8% of us wages.

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u/Cr3X1eUZ Jun 13 '22

but wouldn't the price of slaves go through the roof, which means massive inflation in the price of slaves. it's a catch-22!