No Spin Ag said:
LOYAL AG said:
No Spin Ag said:
Positive numbers are positive, no doubt.
Does anyone have an idea of when the "kitchen-table" stuff (grocery prices and housing) will be coming down and in how much time is normal for it to happen? And also, will we see wage increases as well to match how much better the economy is and will be in real-world applications for the masses?
That's a good question with a complicated answer. I've been telling clients for four years I think most of this decade looks like a consumer recession and a commercial explosion and to this point that's basically what we've seen play out. Not sure that changes much in the coming few years. Construction of facilities and energy infrastructure are going to keep happening for the foreseeable future yet rapid advances in automation are going to strain the employment market sufficiently to suppress wages. If the admin can find a path to accelerate deportations that will certainly help wages but that's a difficult lift.
Appreciate the well-thought-out response.
I guess, to me, I'm just tired of hearing how great the economy is from every administration, and yet things get more expensive, etc., etc.
Still, to those who can benefit from it immediately, good on them.
There's a lot of drivers of inflation at play right now:
1. Money printing. That's been the biggest driver post-COVID.
2. Labor shortages. The math is decidedly against us here with more boomers retiring than we have Z entering the workforce. Thats going to get worse for the next several years.
3. Chinese demographic collapse. China makes a ton of **** we all use everyday. They're no longer a bottomless pit of labor so prices are climbing as that production finds new homes. That's not going to end anytime soon.
4. We're aging as a society. As big of a disaster as ACA has been the reality is we're getting older as a society and that's going to drive up healthcare costs even if we removed the ACA disaster.
5. Way too much government. Way, way too much regulation that stands in the way of innovation and creation. It's damn near impossible to build cheap abundant energy production in parts of this country and in some states we're seeing production decline, ie California. Government's only purpose is to slow things down and it's become exceedingly good at it.
Those are the things I think drive the consumer recession among others. But 2 and 3 are creating opportunities for increased productivity here at home and that's creating the construction and energy infrastructure booms. Love him or hate him Trump at least understands economics and the free market well enough to know that we've gotta grow and grow fast. My biggest beef with the Democrats is literally nobody has any real world experience. They're 100% government ideologues that don't have any understanding of how destructive government regulation can be. The Biden admin was decidedly anti-growth in their actions as was Obama. Only the two Trump terms have seen pro-growth policy. Even W wasn't really focused on growth the way a Republican administration should have been. We're 25 years into this century and have had less than 5 years of pro-growth leadership from the White House. That's a huge problem.
