Quote:
Originally Posted by vtec to vvel
Fed. Chair Jerome Powell is scheduled to get grilled by Congress regrading inflation. So they're having a meeting about something in which Jerome admitted to not understanding and wasting time on something that is theoretically simple to fix, rather than other pressing issues. Raising rates is only half the battle to fighting inflation, and continuing to raising rates at this stage of the game won't do anything! Fix the global supply chain issue and and leave rates where they are.
https://www.cnn.com/2023/03/07/inves...ing/index.html |
There’s another issue below the surface here vis a vis supply chain shortages. If we are truly serious about on shoring production and manufacturing then we are in for a very expensive and higher inflation decade since it’ll take that long to spin up raw material production and manufacturing facilities and train/get workers. And American labor production costs means higher prices for both raw materials and labor— which is inflationary.
Globalization is deflationary as seen over the last 2 decades.
DEglobilization is by definition Inflationary. We seeing this now too.
You can’t go made in America and also have cheap prices and labor.