Does high-interest policy constitute fiscal stimulus?

[vnatale]

Another topic frequently discussed here.


https://andolfatto.blogspot.com/2024/02 ... itute.html

Does high-interest policy constitute fiscal stimulus?

[boglerdude]

Economy is "booming" because government boot is off its neck. And low-skill real wages got cut by whatever amount they increased the money supply minus the mandated increases in min wage.

Unrelated content. Held my attention for an hour but couldnt get all the way through: https://elan.school/

[D1984]

Economy is "booming" because government boot is off its neck. And low-skill real wages got cut by whatever amount they increased the money supply minus the mandated increases in min wage.

Unrelated content. Held my attention for an hour but couldn't get all the way through: https://elan.school/

Are you 100% sure about this? Arin Dube--who is an economist who studies this sort of thing for a living--would certainly disagree with you (see https://twitter.com/arindube/status/1724265679623274974 ; https://www.nber.org/system/files/worki ... w31010.pdf ; https://www.project-syndicate.org/comme ... be-2024-02 ; and https://washingtonstatestandard.com/202 ... st-states/ ). There has from late 2019 to December 2023 been enough of a rise in the (real, inflation-adjusted) average wages of the bottom rungs of the economic ladder to undo more than 3/8ths of the increase in inequality between the bottom and the near top (the gap between those at the tenth percentile and those at the ninetieth) over the past forty years. There were similar (albeit not nearly as large) effects for the middle vs the those at the eightieth and ninetieth percentiles. Tight labor markets tend to do that.

There's still a long way to go, but any progress is welcome.

[boglerdude]

Only thing I'm 100% sure of is Vinny.

Housing affordability is record low. But why should low skill labor get increased real wages. Automation and immigration is increasing.

Wage gap narrowing might be explained by less productive (overpaid) degreed folk getting demoted by work from home.

Comment section on immigration: https://marginalrevolution.com/marginal ... -boom.html