What a grim statistics. Since this is trading forum, how many here consider to be successful trader? I didn't lose my shirt neither do I make significant amount. Dishing out advice is easy but to make money in the stock market is not easy. Otherwise, why bother getting a job, just be a stock trader is good enough. Just don't spend more than income and remember "credit card is a trap for humanity."
Hopefully that will push more people to go out to look for work. Companies are still desperate in finding people. All the signs that I see along the highways are all companies with huge "We are Hiring" billboard signs, one after another. And it's an exaggeration that if you are earning six figures, you are still living paycheck to paycheck. If you are earning six figures, you should be comfortably living through this inflation. You might not be able to splurge but you should be fine. If you are not, then you are not budgeting right.
I have an issue with linking inflation to "living paycheck to paycheck" and hope someone can clarify this link to me. The latest employment figures (which crashed the market when they came out) showed unexpected record high numbers, thus record low unemployment rate. We also know that employers in the last 3 years have increased pay rates to the entire range of the market. We also know that record numbers of workers are working from home, a substantial saving on gas and vehicle maintenance. Some have elected to move and buy larger homes in less expensive areas to accommodate their work from home life change. The point is, on average, Americans are better off today than they were in 2019 before COVID, even with a high 3.41% annual inflation increase since 2018. Between 2018 and 2022 Federal minimum wage has increased in all except 21 states, increases that at least matched inflation. The remaining states are poorer states where cost of living are substantially lower. Again, this affirms the point that Americans are generally better off today than they were prior to COVID. Inflation is the result of more demand than there is supply, so retailers, wholesalers, distributors, supply chain vendors and manufacturers all increase their prices. We know that because everything we buy is more expensive and some companies are making record profits, even those not affected by supply constraints but pressured by rising salaries. So frankly, I don't buy the link between inflation and "living from paycheck to paycheck". I worked in an industry where basic blue collar labor jobs were 150k/year and some were also living from paycheck to paycheck. There was no inflation then, just individuals with no money management skills. As long as companies are willing to pay significantly more than they were 3 years ago we will continue to have inflation. Powell will increase interest rates but not as much as should be if we look at historicals, when rates always hovered over inflation rate, so 9% in today's case. But his job being what it is, we should see companies let go chunks of their labor force and rehire at 30% lower pay a few months later. That will give them the flexibility to lower their margin and help reduce inflation. Of course it's not fair to create unemployment in order to lower inflation. But the top 1% has usually been immune from such social concerns, at least until their heads end on a pike.
There are no favorite songs really, just favorite parts. And this one here is one of mine. Sun coming' up over New York City School bus driver in a traffic jam Staring at the faces in her rear view mirror Lookin' at the promise of the Promised Land One kid dreams of fame and fortune One kid helps pay the rent One could end up going to prison One just might be president queued