Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
The Labor Shortage That Fuels Stagflation
Lucas and Luna explore why the tightest labor market in decades is paradoxically slowing growth rather than boosting it. With job openings at 7,079 thousand and unemployment holding at 4.1 percent, we examine how wage pressures are feeding core services inflation while real GDP growth stalls at 2.2 percent. This deep dive into the structural mismatch between capital investment and workforce availability reveals why the economy feels stuck.
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