I'm not making this up. Federal government is offering extended and enhanced UI and now offers tax credits to employers to ofer hifger wages.
Kinda like the guy who creates a devastating computer virus and then sells a program to remove it.
The administration suggested that these advances could be used to rehire workers, raise wages, improve facilities and purchase new inventory.
So far, more than 30,000 small businesses have already taken advantage of the tax credit, claiming more than $1 billion in credits this year. In order to raise awareness and boost participation in the program, the Treasury Department this week will “disseminate clear and concise steps on how businesses can determine their eligibility and claim the ERC.”
Ideally, credits like these will incentivize workers to return to work sooner and keep them employed as the economic recovery continues.
As I understand things the last stimmy cheques run out in Sept
Already, house buying, autos, appliances, all high ticket expenditures are being put on hold
The slow down in home buying seems to be coming from upper income families as lower income were priced out long ago
So it seems as if that high prices cure high prices
Now the end of the stimmy cheques raises questions about the Jobs market
Currently as I understand things employers are currently offering one time bonuses to work but not a wage increase, with stimmy cheques no longer available and people have to get off the couch, albeit after a nice summer vacation
So: One would think the job market should find more workers
I doubt prices will go down very much, in the near term as stores want to move inventory out at prices paid for inventory. Then we find out if replacement sale prices can hold or is this transitory???
On the price side, houses may have peaked. What about autos as people need to get to work. Appliances may have peaked, as new home building may have peaked with prices putting a lid on new homes and the appliances needed for new homes
We had a red hot CPI number but is this just transitory
The Fed is willing to see inflation at more than 2 % as they tell us they want an average of 2 % over time. One would think the Fed will want to keep int rates low to encourage some inflation
Currently in our farm operation shortages persist, prices have increased and we are still dry. The latest shortage is transportation. We have a large order of steel bridge structures built and waiting at the factory but so far no trucks available to truck them to our farm. Our storage shed is going to start to be built in two weeks so thank goodness we agreed to a price before the big increase in materials. The builder must think the material will arrive, so that is good. Also thank goodness we locked in input prices as current prices are very much higher
So: We have some shortages and some is arriving on time
What will the economy look like in 12 months???
THe slow down in home buying is inventory related. People are buying faster than they become available,