Re:Ask HN: How worried are you about the upcoming recession?
by jdhn on Tuesday May 24, 2022 @10:51PM
(#31500073)
>High inflation is actually a good thing, as it is result from wage increases, which means that there are shortages in the job market.
This is quite the take. I very much doubt that high inflation is good, and that it's primarily derived from shortages in the job market.
Re:Ask HN: How worried are you about the upcoming recession?
by cntrl on Wednesday May 25, 2022 @04:10AM
(#31501805)
> High inflation is actually a good thing, as it is result from wage increases
is it though? At least here in Europe high inflation is mainly caused by rapid increase in energy, logistic and food prices. Wages haven't even started to catch up, which will just cause more inflation in the short & mid-term.
Re:Ask HN: How worried are you about the upcoming recession?
by 0daystock on Wednesday May 25, 2022 @10:54AM
(#31505437)
> High inflation is actually a good thing, as it is result from wage increases, which means that there are shortages in the job market.
Except wages rarely keep up with inflation. Inflation is for rich people to erode and erase debt - or, more accurately, externalize it on others - nothing more.
Unemployment is 3.6%.
Nasdaq was overvalued - QQQ went from 100 in 2016 to 400 in 2021. No reason not to return to 150-200.
The only concerning events is that the capital that left the market would never return since it was the baby boomer last big capital injection before they retire en mass and remove thier 401K from stocks.
On the other hand, there is a lot of job openings due to this retirement.
High inflation is actually a good thing, as it is result from wage increases, which means that there are shortages in the job market.
Overall, this looks to me like the wage arbitrage is being removed from the market.