Layoffs are coming
mark94
Arizona
Friday, May 6, 2022 12:51 AM
While everyone is talking about inflation, there is another important economic measure flashing severe danger. The Bureau of Labor Statistics just announced that output, what was created, dropped 2.4 percent, yet labor hours used to create those outputs increased 5.5 percent. This creates a productivity drop of 7.5% for the overall business. The largest quarterly drop in productivity since 1947.
This sudden and severe drop in productivity, caused by price inflation and a resulting drop in demand, is going to force large businesses to reduce their workforce.
This is a repeat of the stagflation from the 1970s. Government spending and debt leads to inflation, which reduces demand, which leads to layoffs, which further reduces demand, and so on.
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