AMD Reports Fourth Quarter and Full Year 2022 Financial Results

[RandallFlagg]

By the definition of recession, the US is not in one as GDP was up last quarter. GDP must be negative for two consecutive quarters for their to be a recession.

Inflation is the big concern now. Usually one leads to the other but for some reasons economies are growing not shrinking. Mainly the tech sector is suffering as it thrived during the pandemic while most other industries flailed.

It happened in the 70s too. In the US 8 out of the 10 years in the 70s, real inflation-adjusted GDP was >3%, and two of those years it was >5%. Only two years in the 70s was GDP negative. Inflation averaged 7.25%/year for those 10 years.

The problem is the effect high inflation has on labor, tends to outstrip income and did so in the 70s. Hence the 70s saw a huge decline in real wages for individual workers, despite the GDP pump. However, real household income rose in the 70s - because more women entered the work force, which offset the decline in inflation adjusted wages.

We have no such potential cushion this time.

 

[Bwaze]

Child labour?

Just a thought.