Whew! or Wow! → 9,316,000 workers are without jobs in the U.S., the figure was 5,717,000 before the pandemic. The Federal Government and Federal Reserve answered the call by authorizing $10 trillion in financial support to stave off depression. The efforts by united Central Banks and collective governments have been effective. Now what? The Fed’s congressional mandate is to maximize employment and stabilize prices. Economists and soothsayers argue that inflation is apt to be temporary. Economics 101 → basic laws of supply and demand state when demand exceeds supply, prices go up.
Inflation or Disinflation – Transitory or Enduring
Think about it; there are currently 9.2 million job openings. And, there are currently 9.3 million people unemployed, according to the Bureau of Labor Statistics. That’s nearly equilibrium. Recently, an airline indicated that it would cancel 80 flights daily because they are understaffed. In communities around the nation, restaurants and other service providers are at a standstill because of the lack of workers. So, as the Fed continues to inject $120 billion monthly to lower the unemployment rate, is this the correct long-term decision considering the present gridlock?
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