The economy’s strength and stability — defying many of the most optimistic predictions — represents a remarkable development after seemingly endless crises

As 2023 winds to a close, Powell and his colleagues are far from declaring victory on inflation. They routinely caution that their actions could be thwarted by any number of threats, from war in the Middle East to China’s economic slowdown. Americans are upset about high costs for rent, groceries and other basics, which aren’t going back to pre-pandemic levels. The White House, too, is quick to emphasize that much work remains.

Yet the economy is ending the year in a remarkably better position than almost anyone on Wall Street or in mainstream economics predicted, having bested just about all expectations time and again. Inflation has dropped to 3.1 percent, from a peak of 9.1. The unemployment rate is at a hot 3.7 percent, and the economy grew at a healthy clip in the most recent quarter. The Fed is probably finished hiking interest rates and is eyeing cuts next year. Financial markets are at or near all-time highs, and the S&P 500 could hit a new record this week, too.

  • Semi-Hemi-Demigod
    30•10 months ago

    It also stops working when the vast majority of the population lacks capital. The recent experiments with a UBI in Kenya show this pretty well. Folks who decided on a lump-sum payment rather than monthly invested in creating businesses and were better off.

    • @givesomefucksEnglish
      25•10 months ago

      I mean, there’s been studies in America too.

      Give an average American a dollar and it boost the local economy by more than a dollar.

      They tend to already have things they’re saving up for, and spend it at local businesses.

      Give the wealthy a dollar, and they hide it in Panama. Remember that big thing where we found out they all do it and then nothing happened?

      That money never gets spent, it sits in a bank somewhere anonymously and is often permanently removed from the economy.