The Two Economies of Post Pandemic America: Part 1 - How the Recovery Began

[Luis Gonzalez]

The Two Economies of Post Pandemic America: Part 1 - How the Recovery Began

What happened to the macro economy during the borrow and spend surge of 2021 and 2022

The Last Wire

If you only glance at the news, the story seems simple.

The pandemic collapsed the economy. Then the economy recovered.

Gross Domestic Product rebounded. Corporate profits surged. Unemployment fell. Equity markets climbed. By 2022, many commentators were calling the recovery historic.

Yet millions of Americans disagreed.

They said the economy felt more expensive. More fragile. Less forgiving.

Both things can be true at the same time.

That is because we are not dealing with one economy. We are dealing with two.

This piece explains what the macro economy is, what happened to it during the pandemic borrow-and-spend response, and why its recovery created the conditions for the disconnect voters now feel.

Continue reading at The Last Wire.

[DefiantMassRINO]

The cause of 'sticky inflation' were Fed's dismissal of inflation as 'transitory' and Biden Admin's war against America, Americans, and American businesses.

[Wingnut]

The cause of 'sticky inflation' were Biden's dismissal of inflation as 'transitory' and Biden Admin's war against America, Americans, and American businesses.

The Biden Adms agenda of Over regulation and taxes are not a recipe for growth. 

[Canuck Conservative]

The cause of inflation is the same it's always been -

Too much money sloshing around

[DefiantMassRINO]

America has 3 economic classes of people:

1.) Those whose wealth comes primarily from capital gains (doing very well)
2.) Those whose wealth comes primarily from paychecks / earned income (chumps, suckers, patsies)
3.) Those whose wealth comes from Government largesse (illegals and fraudsters doing better)

[Free Vulcan]

20+ years ago they changed the inflation calculation by including electronics into the mix, which weighs down the numbers because electronics are always getting cheaper per a given configuration.

Problem is electronics is generally discretionary income that people don't buy all the time, so the index really doesn't reflect the Average Joe's monthly cash flow, which mostly goes to basics which are in many cases still rising, making the average family struggle.

Most people seem to deal with it one or two ways, either try to function in the corporate/govt economy, or go more underground to the cash or barter, side hustle, self-sufficiency economy. Alot of people have went that way not only to save money, but because of the cancel culture the came out of COVID for anyone who doesn't tow the social justice line.

[Smokin Joe]

Slow to respond, but a core part of microeconomic inflation. are fuel costs. Here, back under $2.50/gallon for 87 octane regular gas, now. That's down from a high of $4.20/gallon a couple of years ago.
Diesel is similar, and perhaps more relevant (although most of us drive gasoline vehicles) because it is diesel that moves cargo, and the transportation costs made for a surcharge on the consumer or loss of profit by those depending on motor transport of raw materials, subassemblies, etc. (before shipping final products to consumers).

I am painfully aware of how far those prices have dropped, looking at a 90% reduction in my non Social Security income as the drilling industry here implodes slowly. Thankfully, I can survive fine without that income, just a little tighter belt, not crisis, because that was mainly my source for discretionary funds, not essentials.

[Luis Gonzalez]

America has 3 economic classes of people:

1.) Those whose wealth comes primarily from capital gains (doing very well)
2.) Those whose wealth comes primarily from paychecks / earned income (chumps, suckers, patsies)
3.) Those whose wealth comes from Government largesse (illegals and fraudsters doing better)

I spent my life as a combo of 1&2.

I did well.

[Wingnut]

I spent my life as a combo of 1&2.

I did well.

1&2 for me
3 for Mrs. Nut.
 
We are doing above average. Lake Wobegon Ish, where all the women are strong, all the men are good looking, and all the children are above average

[Idiot]

Slow to respond, but a core part of microeconomic inflation. are fuel costs. Here, back under $2.50/gallon for 87 octane regular gas, now. That's down from a high of $4.20/gallon a couple of years ago.
Diesel is similar, and perhaps more relevant (although most of us drive gasoline vehicles) because it is diesel that moves cargo, and the transportation costs made for a surcharge on the consumer or loss of profit by those depending on motor transport of raw materials, subassemblies, etc. (before shipping final products to consumers).

I am painfully aware of how far those prices have dropped, looking at a 90% reduction in my non Social Security income as the drilling industry here implodes slowly. Thankfully, I can survive fine without that income, just a little tighter belt, not crisis, because that was mainly my source for discretionary funds, not essentials.

I'm sorry Joe, you are a good guy.  If I had some work to send your way I would.   

[Smokin Joe]

I'm sorry Joe, you are a good guy.  If I had some work to send your way I would.   

Thanks. It's the nature of things, and not wholly unanticipated. CAPEX shifts, and there is lower hanging fruit elsewhere. I have worked eight states over a 46 year span, so it's just a matter of deciding whether to retire or not.

[Luis Gonzalez]

Thanks. It's the nature of things, and not wholly unanticipated. CAPEX shifts, and there is lower hanging fruit elsewhere. I have worked eight states over a 46 year span, so it's just a matter of deciding whether to retire or not.

Dude... call it!

Go find a pond someplace where it's warm 97% of the year.

Chill out, try to befriend crows and give all the gators that cruise by proper names.

Good MJ helps 

[Idiot]

Thanks. It's the nature of things, and not wholly unanticipated. CAPEX shifts, and there is lower hanging fruit elsewhere. I have worked eight states over a 46 year span, so it's just a matter of deciding whether to retire or not.

The Lord bless you and keep you; the Lord make his face to shine upon you and be gracious to you; the Lord lift up his countenance upon you and give you peace.

[Bigun]

I spent my life as a combo of 1&2.

I did well.

Same here! Never got a dime from Cat. 3 unless you count the Social Security checks.