The Strangest Recession Of Our Lifetimes, by Jeffrey A. Tucker

There’s a shortage of workers with real hands-on skills and a surplus of Zoomers. The recession will hurt the latter far more than the former. From Jeffrey A. Tucker at The Epoch Times via zerohedge.com:

The evidence of economic weakness and decline fill the headlines day by day, with major banks reporting lower earnings, big box stores with excess inventories, home sales skidding, and consumer sentiment crashing.

Meanwhile, inflation in all sectors is raging so high and hot that it has overtaken every other issue that polls say matter in the lives of average Americans.

This inflationary recession—also called stagflation—is an odd beast in any case. The combination of both purchasing power declines and falling productivity violates not only every modeling presumption made since the Keynesian revolution of the 1930s but also just plain intuition. Higher prices are supposed to signal higher demand and/or tighter supply, not lower demand and higher supply.

So yes, this is strange. We are going to have to get used to it. It’s what happens when the money itself loses its integrity. The whole point of money in the first place—the essence of its economic utility—is to provide a common tool of measurement to facilitate trade and enable accounting. Its emergence permits investors, producers, and capital owners to assess the economic rationality of their actions.

When money blows up and no longer serves as a reliable guide to economic realities, various degrees of chaos ensue. You can feel like you are getting richer when you are really getting poorer. What can seem like profits are really losses. What seems like a hopeful environment can quickly switch to the other direction and become despair.

This is why inflation induces such fear in every sector of life.

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