Federal Chair Jerome Powell discusses some changes on inflation. You can read an overview in Powell's Warning. I'm not going into super depth about what he is saying but I would agree that there are larger environmental factors involved outside the U.S. (i.e. war, supply chains, etc...) We want to see wages rise without necessarily raising price (That will require rebalancing our labor market to raise value, wages, and functionality. It means we do more with our current labor and increase their market inputs. None of that means that companies should not think about the growing differences between executive pay and labor pay. A level of narrowing that gap can be helpful.). Interest rates are likely to rise to slow the economy down. Part of me thinks there is some advantages to putting ourselves at the center of the highest value leg of the global supply chain and leak off to our allies lesser activities to raise the value of our labor. Not 100% sure how to do that.
Too bad we couldn't make a push to return manufacturing and Foreign Direct Investment (FDI) back to the U.S. to ride the wave! (Lots of people are likely looking for alternatives to invest in manufacturing from China. See G7 Gives China the Belt. 😏. They will need to do more than that but at least they are talking about it. China and "The West" can find their own niches but it is time "The West" find look for new competitive strategies. That is why I think we should look at Rapid Innovation Systems. An unfinished national innovative cluster theory.)
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