Comments by "Ivancho" (@ivancho5854) on "Autoworkers Strike: The Unions' Rising Influence in America || Peter Zeihan" video.

  1. Yup, add to that a 5 to 10 year long recession/depression and some manufacturers (Tesla?) will go belly up. It's going to be unbelievable. Today most people who are union members in auto manufacturing are just trying to get by and unfortunately probably not able to predict even the near future. During the great depression many people accepted wage cuts just to keep their jobs. I wonder if workers will be smart enough to do the same next time. Time will tell.
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  2. Yes, we have definitely entered an inflationary wage spiral, which was guaranteed once government employees got raises and will ultimately lead to devaluation of the currency. Unfortunately the reason that workers demanded raises is due to the cost of energy having increased, which the UK had little control over, which then increased food costs. Concurrently the US Federal Funds Rate was increasing and again this was outside the UK's control, however the Bank of England was in turn forced to raise rates to prevent currency flight. The average person who had a mortgage and renters are squeezed by this combination almost to breaking point. The net result of this inflationary wage spiral will only result in the UK being more costly and less competitive and the value of the Pound will be forced down. Many more will suffer from this than from the rate hikes which are temporary and the energy increases which we see are already coming down. The only upside, kind of, is that the economy is slowing and during the coming recession/depression those who have negotiated higher wages will probably get fired and re-employed at a lower rate, which will reset the needle quicker. Perhaps the only beneficiary may be the UK government whose debt will be eroded somewhat, though that will be offset by increased borrowing costs.
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  3. They can't continue to go up. The cure for high prices is high prices.
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  4. We have a winner! Most economists concentrate on the supply side and take demand for granted. Demographics dictate the cycles, because having children is where fixed demand originates. Old folks don't spend and the older they get the less they spend. Try doing that when you are responsible for children - it doesn't work.
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