working man is screwed on both ends. Minimum wage will limit the job openings, and illegal aliens getting citizenship to destroy pricing power for labor.
Inflation is going to wipe out what's left of his savings and reduce his purchasing power. The only upside to all this is the onshoring already started under Trump, but it won't be fast enough or large enough to offset the short term damage.
It's worse. Rapid inflation will kill the credit markets. Corporations will either have to borrow at higher costs of capital or not get any lenders.
Why the fuck would a pension fund buy GM debt with a 5% yield when inflation is at a 4% annualized rate? Why would anyone buy GE short term paper when the yield barely covers inflation?
Borrower will have pay more for cost of capital and that is the beginning of the end.
working man is screwed on both ends. Minimum wage will limit the job openings, and illegal aliens getting citizenship to destroy pricing power for labor.
Inflation is going to wipe out what's left of his savings and reduce his purchasing power. The only upside to all this is the onshoring already started under Trump, but it won't be fast enough or large enough to offset the short term damage.
It's worse. Rapid inflation will kill the credit markets. Corporations will either have to borrow at higher costs of capital or not get any lenders.
Why the fuck would a pension fund buy GM debt with a 5% yield when inflation is at a 4% annualized rate? Why would anyone buy GE short term paper when the yield barely covers inflation?
Borrower will have pay more for cost of capital and that is the beginning of the end.
THIS! Business is not ran on emotional capital like the new administration. The costs will be otherworldly.