Taps Coogan – April 10th, 2021
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The following chart, from The Daily Shot, shows the results of the NFIB small business survey. Those results points to a looming jump in compensation (i.e. wages) as small business struggle to compete with expanded unemployment insurance and stimulus checks and lure people back into the workforce.
According to conventional thinking, one of the long-missing ingredients to persistently higher inflation has been ‘wage inflation,’ more traditionally known as a rising wages. Robust wage growth was already starting to come into force in 2019 and it looks like its return is imminent, despite very low labor participation, or in this bizarre case because of very low labor participation.
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