- We have terrible housing inflation.
- We have “suppressed” wage inflation. We would have wage inflation if large, large companies, such as Amazon, were not doing all the hiring as it puts most other retailers out of business. So, they have no wage competition. Competition applies to all areas of business- even labor. No competition = suppressed prices. We do not have wage inflation … when we should have it, and need it.
The problem is that as the Fed raises rates to normalize its balance sheet and to bring housing costs under control, it hurts consumers … who already have stagnant wages.