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It’s not just that wages are stagnating, inflation is also ticking back up due to tariffs. Stagflation never ends well. Interest rate cuts will help the form but will hurt the latter.
Great so we have that to look forward to!
Republicans in charge means we are heading into a Recession.
#Facts
Oh god good luck.
It does seem that the bad job market has driven wages downward, which is simply how markets work. And there could be a domino effect from that, of course. If people cut back on their buying that affects the economy and things start to trend, or spiral, downward. So sure, there could be some pretty negative consequences.
Time for another crash.
It’s not just that wages are stagnant. The US stock market is booming. That combination signals “a recession for employees, while growth for employers” in a way that essentially fractures the economy. A crash or other significant disruption to realign is inevitable.
IMO it signals stagflation on a global scale - the problem we have is inflation still hasn't come down much (or is still going up) depending where you live; yet wages remain stagnant, cost of living is rising, good and services costs are still too high.
I think we're at the precipice of change - lot's of consumers are stopping their spending, because everyone has to prioritize where they spend money, what bills come first and where we make sacrifices.
Like other recessionary or times of inflation; consumer spending will be the determining factor of how bad the recession is. Businesses will conservative with the purse strings: less or lower raises, layoffs, restructuring, etc. This drives wages down, offer less job openings, and businesses hesitate to spend money.
Wages will come up - but not until there are signs of a recovery, aside from someone highly skilled, in-demand or where the role is critically needed.
Overall, I think we need a deflationary recession to reset prices - this will let our dollar go farther so businesses don't have to keep upping pay and we the people can have a better quality of life - BUT, this means pain during a recession between now, and when we recover.
Wages have always been slow to rise