Conservatives argue against raising wages by claiming it’ll raise prices. But that isn’t reliably supported w historic data. However, what we’re seeing now is perhaps an ex. of prices rising when wages/benefits are *too low*- not enough workers, hurts supply chain, prices hike.
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When people drop out of the workforce, it’s a pretty complicated & expensive endeavor to get them back. The reason is bc unlike physical supply chain issues where problems are a bit more straightforward (not saying easy, but more clear), labor supply issues can be more complex.
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You can see this in the issue of wages. You will sometimes hear stories of a place claiming to have raised wages but still having trouble keeping people. Well, when a pandemic devastated intergenerational families of workers and there’s no childcare, people can’t go back to work
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I haven’t seen data yet if those anecdotes are indicative of a larger trend (& if so, how large), but the point still stands. Like many working class Latino families,my grandma lived with us growing up and cared for me as my parents worked. Until she moved in, my mom stayed home
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My family is one of essential workers: school bus drivers, postal workers, cleaners, etc When childcare wasn’t available, my family couldn’t work - they stayed home. When childcare isn’t universally available, it impacts the labor market. It can become a supply chain issue!
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For people saying this is too out there, read this WSJ coverage. Women, low income workers, people of color are disproportionately represented in those not re-entering the labor force. There are reasons for that! https://www.wsj.com/amp/articles/labor-shortage-missing-workers-jobs-pay-raises-economy-11634224519 …
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Concerned? My groceries are rocking in price, gas is expensive, but my rent is going up 20%! How is that supply chain related?
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Rent going up is also supply related.
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Not that gov't printing, borrowing, and spending has anything to do with it.
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yes the government just started doing that this year
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