oh boy, there is inflation... and a crapton of it.
The economic policy of printing dirt cheap money and hiding all inflation is not working, because basic necessities (housing, food, basic services) are becoming more expensive while wages are not rising.
recently, i was looking at getting a mortage in my country. According to the accountant bureau, i was able to get roughly 400K in mortage (with 2 people that is). This ends up being around 1500 a month in payment.
My collegue got a house around 6 years ago, and was only able to get around 250K while stilling paying around 1400 a month...
Money is becoming inflated, but wages are not rising to play catchup fast enough.
This wil leave a lot of people in the dust, and if we do not change direction in terms of fiscal and economic policy, it will lead to massive problems in the long run. The housing shortage is putting young people on hold. Which in term means many are considering moving to other countries to get proper housing and be able to get children.
an anecdote.
In my direct team, around 1 in 6 young people has his own home. (rent or bought). The rest still live in student accomidation or at home. Many are in their late 20's and some are considering leaving the country for places with better housing markets.
These are people with high paying jobs who can afford to migrate, which will lead to brian drain in the future.
Also, i don't know the situation in the US. But many people are fed up with the current neoliberal economic model because it is not working them, and turning to more extreme politics as a result.
a good example of this is the youth wing of the dutch socialist party being cast out of the party because it is too extreme according to the party[0].
> But many people are fed up with the current neoliberal economic model because it is not working them, and turning to more extreme politics as a result.
What's sad is that we had sound financial axioms over 1,400 years ago by means of Islam. It prohibited things like interest, gambling/selling what you don't own (see: call and put options), and a handful of other things, while allowing society to move about within those bounds (which is still a very large space). Competition is welcome, so there is some overlap with Capitalism, but without its downsides.
The economic policy of printing dirt cheap money and hiding all inflation is not working, because basic necessities (housing, food, basic services) are becoming more expensive while wages are not rising.
recently, i was looking at getting a mortage in my country. According to the accountant bureau, i was able to get roughly 400K in mortage (with 2 people that is). This ends up being around 1500 a month in payment.
My collegue got a house around 6 years ago, and was only able to get around 250K while stilling paying around 1400 a month...
Money is becoming inflated, but wages are not rising to play catchup fast enough.
This wil leave a lot of people in the dust, and if we do not change direction in terms of fiscal and economic policy, it will lead to massive problems in the long run. The housing shortage is putting young people on hold. Which in term means many are considering moving to other countries to get proper housing and be able to get children.
an anecdote.
In my direct team, around 1 in 6 young people has his own home. (rent or bought). The rest still live in student accomidation or at home. Many are in their late 20's and some are considering leaving the country for places with better housing markets.
These are people with high paying jobs who can afford to migrate, which will lead to brian drain in the future.
Also, i don't know the situation in the US. But many people are fed up with the current neoliberal economic model because it is not working them, and turning to more extreme politics as a result.
a good example of this is the youth wing of the dutch socialist party being cast out of the party because it is too extreme according to the party[0].
0:https://nos.nl/artikel/2359281-spanning-tussen-sp-en-communi...