The problem is current price levels from recent rapid inflation. What would it take to deflate prices without a recession? Without deflation, it will be hard for the electorate to regain the purchasing power they lost. And there will be no recession due to structural demographics in the labor market (10k Boomers retiring per day, ~3.6M per year), regardless of how hard the Fed beats on the economy with the benchmark rate.
Corporations keep cutting labor costs to attempt to maintain profit levels obtained during ZIRP. Only through organizing will workers have enough collective power to obtain material real wage gains, unless their is a macro lever I am missing (which is entirely possible).
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I'm pretty sure it's actually a hatred of a decrease in real purchasing power, and... why would anyone not hate that?
Personally I'd rather not get a raise at 2% inflation than a 3% raise at 6% inflation, and I don't think that's unreasonably irrational?
The problem is current price levels from recent rapid inflation. What would it take to deflate prices without a recession? Without deflation, it will be hard for the electorate to regain the purchasing power they lost. And there will be no recession due to structural demographics in the labor market (10k Boomers retiring per day, ~3.6M per year), regardless of how hard the Fed beats on the economy with the benchmark rate.
In an economy with borrowing, nothing. Deflation increases the real debt burden.
More pointedly: price levels are imaginary. The focus should be on real wages.
Corporations keep cutting labor costs to attempt to maintain profit levels obtained during ZIRP. Only through organizing will workers have enough collective power to obtain material real wage gains, unless their is a macro lever I am missing (which is entirely possible).
As long as you're a net borrower, sure. For net savers, it's a bit less pleasant.