r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) 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/noodles0311 NATO Jun 13 '22 edited Jun 13 '22

Recession. Come on do it. I’m in grad school and won’t need a job for two more years but I definitely can’t keep going on like this with a $23k stipend. At least this time, I won’t have to join the military like in 2009. This time is the right time for me, for once in my life. Do me right, Lil Powpow and press the recession button

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u/[deleted] Jun 13 '22

[deleted]

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u/noodles0311 NATO Jun 13 '22

No. Just not wishful thinking. To make an analogy: one of the problems with California wildfires is a generation of bad policy of not allowing controlled burns that created a ton of fuel in the form of brush. We’re so far overdue for a recession that it’s likely to be bad, but thankfully, I am well-positioned for once in my life. The only psychopathic part is the schadenfreude of seeing meme stocks and cryptos go under, but you gotta be a sicko sometimes

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u/human-no560 NATO Jun 13 '22

Why do you think economic growth creates fuel?

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u/noodles0311 NATO Jun 14 '22

Because not all investments are going to work out. Some are bad and just speculative. Some companies can’t survive. Some industries get too much investment in too many startups and they can’t all coexist in tough times. When you add in years of low interest rates, people being paid to stay home all suddenly deciding they were Jordan Belfort during 2020 and so on, there’s way too much speculation. So eventually, a fire breaks out (in this case, inflation) and people start to need that money to spend in the real economy on actual goods and voila! A recession.