Fact 1: “Inflation” is at the top of the headlines on a daily basis right now, but if you look at it product-by-product price increases appear highly skewed. That’s not to say the inflation isn’t real - rather, it seems to be affecting drivers more than anyone else. The problem is almost everyone is a driver.
Fact 2: Declining marginal revenue product of debt is one of the biggest arguments for long-term deflation/disinflation to resume once the world works through the current inflationary burst. As more debt is created the economic benefit provided by that new debt (i.e. marginal revenue product of debt) declines. Money created by new debt becomes trapped in the financial system and money velocity falls. This results in a vicious cycle, as an increasing amount of debt is required to produce a dollar of output, putting even more downward pressure on money velocity.
Fact 3: It’s a well worn fact that the best raises go to those who jump from one company to another. Never has this been more true than today. It’s a job seeker’s market out there.
Fact 4: The middle class has been dying a slow death over the past 30 years and this trend just passed a key milestone - the top 1% now own more wealth than the middle 60%.
Thanks again and don’t forget to share with someone interested in investing or economics.