{"id":57093,"date":"2021-03-14T08:04:42","date_gmt":"2021-03-14T13:04:42","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57093"},"modified":"2021-03-14T09:00:54","modified_gmt":"2021-03-14T14:00:54","slug":"new-normal-high-unemployment-near-zero-interest-rates-and-out-of-control-inflation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57093","title":{"rendered":"New Normal: High Unemployment, Near-Zero Interest Rates and Out of Control Inflation"},"content":{"rendered":"
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New Normal: High Unemployment, Near-Zero Interest Rates and Out of Control Inflation<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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\"New<\/div>\n

Since the pandemic began a year ago, the term \u201cnew normal\u201d has become part of the American lexicon. Not \u201cnew\u201d as in better or improved. But rather \u201cnew\u201d as in contrast to the way things used to be.<\/p>\n

Much of the mainstream\u00a0discussion<\/a>\u00a0argues that returning to the \u201cold\u201d normal isn\u2019t likely to happen. Things like pre-pandemic employment, closer-to-normal price inflation, and less economic uncertainty just aren\u2019t on the map.<\/p>\n

The Street summed it up<\/a>\u00a0generously as: \u201cNumerous chain reaction ripple impacts will delay the economic recovery.\u201d Some of these \u201cripple effects\u201d were in motion long before the pandemic hit.<\/p>\n

For example, the Fed was already in a state of panic thanks to an out-of-control repo rate\u00a0fiasco<\/a>\u00a0from 2019, mounting\u00a0debt<\/a>, and potential ineffectiveness\u00a0of its main tools<\/a>.<\/p>\n

During the \u201cold normal\u201d the Fed would have been able to deploy its tools to control rates and keep unemployment under control \u2014 but that might not be possible now or in the future.<\/p>\n

Under the post-pandemic \u201cnew normal,\u201d the potential exists for the \u201cripple effects\u201d from the state\u00a0closure of small businesses<\/a>, developing automation, and fractures in the food supply chain to be felt more permanently.<\/p>\n

Is the U.S. Heading for Permanently High Unemployment?<\/strong><\/p>\n

In a way, thanks to the pandemic, yes it is. But it depends on many factors.<\/p>\n

Wolf Richter\u00a0laid out<\/a>\u00a0why he thinks the sudden economic shifts that happened in 2020 will take years to sort out:<\/p>\n

Now the Pandemic has forced businesses to change. There is no going back to the old normal. And these technologies impact employment in both directions.<\/p><\/blockquote>\n

If the pandemic has forced businesses to adopt technologies that automate certain functions, then the employees that performed those functions will no longer be necessary.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

New Normal: High Unemployment, Near-Zero Interest Rates and Out of Control Inflation Since the pandemic began a year ago, the term \u201cnew normal\u201d has become part of the American lexicon. Not \u201cnew\u201d as in better or improved. But rather \u201cnew\u201d as in contrast to the way things used to be. Much of the mainstream\u00a0discussion\u00a0argues that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,426,431,607,824,4254],"class_list":["post-57093","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-inflation","tag-interest-rates","tag-pandemic","tag-unemployment","tag-wolf-richter"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57093"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57093\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}