Re: The "Modern Economy"

• Interest Rates
  • Interest rates are not high against a long-term historical perspective. Only, against an astonishing period in which the Fed has made (borrowing) money free (near zero interest rates).
  • The cause of the recent financial assets value drop (stocks, bonds, housing), has been the reassertion of actually meaningful interest rates. And, the Fed has been loath to do even this because of all the whining from Wall Street, and real estate companies -- agents, landlords, servicers (e.g., title companies), and fear of recession.
• Housing
  • The aging population, the shrinkage of the middle class (Chinaization), and now rising interest rates have lead to less turnover in housing.
  • Older people who own or rent see no advantage in moving or selling, snd they’re living longer while younger people are less able to afford homes, thereby decreasing demand and price.
  • Moreover, many landlords would rather stick with a family that has paid its bills over decades than one that because of the other conditions might be iffy. Apartments rented at a higher rate that are frequently vacant are not a money-maker.
• Labor Big reasons for a labor shortage, even in the midst of significant inflation (thus spurring inflation, further):
  • Our ageing population is retiring at a faster rate -- more people are retiring than ever before, because of ageing
  • Some people are retiring early before their pension fund is discontinued or is going bankrupt
  • Many people retired early because of ill-treatment during the pandemic (e.g., medical workers).
  • Birthrates are lower, and immigration has been squeezed, thus retarding the replacement pool.
  • College has gotten astronomically more expensive. thus barring qualification of those who cannot afford college degrees.
  • One big effect of the labor shortage is that some skilled workers have gone independent and become contractors, they charge twice or more what they would have earned as an employee(including benefits), thus also increasing inflation. For example, this is a rampant issue in hospitals WRT RNs.
• Inertia
  • These are ongoing problems that are slowly being adjusted to as we ignore the principal threat to democracy, the republic, and eventually civilization -- #AcceleratingGlobalClimateCataclysm
  • These are not Biden's nor the Democrats fault, but without a clear majority they cannot fix them. Moreover, the biggest first step of a fix IMHO would be a fair, rigid progressive income tax rate schedule, which I don't think they have the gumption for.
  • Bernie did, but he's too old, now, and his window of opportunity is passed.
  • Whatever the issues, Trump, DeSantis, the GOPers, fundamentalist or chauvinistic (i.e., most, if not all) religion, and aging white male brains will only make them all worse (said, the aging white male).