Hiking Without a Map

Source: Bloomberg

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  1. gordo365 commented on Dec 15

    Apparently – this time it IS different.

    Is bulge of retiring baby boomers they underlying cause? e.g. Low wage inflation, low labor participation rate?

    • Iamthe50percent commented on Dec 16

      Doesn’t the labor participation rate look at people UNDER retirement age? And how would a bulge of retirees withdrawing from the work force cause wages to go down rather than up?

      As fashionable as it is these days, not every economic woe can be blamed on the existence of the baby boomers.

  2. winstongator commented on Dec 15

    They need to slowly target a higher rate of inflation. Maybe end up at 4%, moving up 0.5% increments. Take maybe 20 years. Or when inflation does come, tame it back down to 4% or so and leave it there.

  3. Futuredome commented on Dec 15

    Sorry, but the labor force rate is rising. Only because of the slowing of the labor force rate is the “official” number falling. Go with ZPOP. It adjusts out the nominal population numbers in the labor force. The current ZPOP is consistent with rate hikes of the past.

    Wage growth isn’t low either. It is accelerating. A. Real Wages are rising with the damaging oil price inflation ending, 2. government lag on nominal wage inflation. Period. Look at the last 3 expansions, especially 86-87 and 05-06.

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