Peter Navarro, Donald Trump’s trade advisor, said we are set up for inflation with slow to recessionary growth, also known as stagflation.
On Capitol Hill, they’re going crazy on the Keynesian front, spending trillions of dollars, hand over fist, so that’s going to be a demand shock that’s going to push inflation up. On the supply side, we’ve got this pandemic shock that’s hitting us in all sorts of ways.
The supply side is being pinched, driving prices up. We have a very, very distorted labor market right now. We are seeing service sector refugees who don’t have the skills to move over to available jobs, not being filled.
People over 55 years are retiring earlier. Over time, it will mean wage inflation with all the other problems.
Retiree’s wages will not keep up and the working poor will suffer.