Recession, Inflation, and the Small Business Sector
Want to understand what’s happening in the economy? Look to inflation-adjusted data. Wage levels and company revenues are reported in nominal terms, while the GDP estimates are adjusted for inflation. That’s why they appear to be headed in different directions when, in fact, it’s all going south.
It’s also the reason inflation is something to be avoided, and something to be addressed quickly when it does appear. When you dump trillions of new dollars into the economy for a year or two, people and businesses feel wealthier and flush with cash. They spend more, increase commitments, and hire more workers.
So the …
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