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The post pandemic economy is just different and old models/expectations don't work

Posted on 6/3/25 at 11:54 am
Posted by sidewalkside
rent free in yo head
Member since Sep 2021
3469 posts
Posted on 6/3/25 at 11:54 am
Employers are too scared to lay off significant amount of employees after the mid/post pandemic rehiring bonanza with the runaway salaries and under experienced new hires filling roles. Therefore old world "recessions" are not the same as current virtual full employment recessions.

Fed funds decisions are virtually baked in many months before they happens and with the amount of information available "the market" (consumers, companies, traders etc) adjust much faster than in the previous generations.

There is a much smaller "middle class" these days and the "K shaped" economy just keeps getting more K shaped. And the bottom portion of the K means less and less to the economy and the upper portion of the case means more and more.

Historical Ultra low mortgage rates have thrown a major monkey wrench in consumers expectations for the housing market. We will likely not see a 2007-2008 type real estate market tank yet everyone keeps waiting for it. Meanwhile the price of housing continues to become more unaffordable.

The list goes on
Posted by LemmyLives
Texas
Member since Mar 2019
10427 posts
Posted on 6/3/25 at 11:55 am to
quote:

Employers are too scared to lay off significant amount of employees


Posted by Grooler
USA
Member since Dec 2009
486 posts
Posted on 6/3/25 at 11:58 am to
quote:

There is a much smaller "middle class" these days and the "K shaped" economy just keeps getting more K shaped. And the bottom portion of the K means less and less to the economy and the upper portion of the case means more and more.


Stop this right now.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
75139 posts
Posted on 6/3/25 at 12:00 pm to
quote:

with the runaway salaries




It was only considered runaway to the people with equity.
This post was edited on 6/3/25 at 12:01 pm
Posted by frequent flyer
USA
Member since Jul 2021
3351 posts
Posted on 6/3/25 at 12:10 pm to
quote:

Employers are too scared to lay off significant amount of employees


Trust me. They are not scared to lay people off.
Posted by sidewalkside
rent free in yo head
Member since Sep 2021
3469 posts
Posted on 6/3/25 at 12:29 pm to
quote:

Trust me. They are not scared to lay people off.
never said they were....i said they were scared to layoff "significant" amount of employees. They will layoff much more surgically than they have in the past
Posted by sidewalkside
rent free in yo head
Member since Sep 2021
3469 posts
Posted on 6/3/25 at 12:30 pm to
quote:

people with equity.
those were the people who mattered the most
Posted by MikeAV8s
Member since Oct 2016
2060 posts
Posted on 6/3/25 at 12:33 pm to
I didn’t read the wall of text, but the title is true. It fundamentally changed the workplace. Those who are adapting and accepting are doing better.
Posted by el Gaucho
He/They
Member since Dec 2010
56983 posts
Posted on 6/3/25 at 12:40 pm to
quote:

There is a much smaller "middle class" these days and the "K shaped" economy just keeps getting more K shaped. And the bottom portion of the K means less and less to the economy and the upper portion of the case means more and more.

You’re looking at the graph wrong if you believe this


The y axis is “how much you make” and the x axis is “how good your life is”

Basically people that make more than a billion and people that don’t work eat steak and lobster every night and have the best healthcare

Everybody else is screwed

ETA: but yes it is k shaped


The middle of the k is like 70-100k because they have no real purchasing power, get taxed at like 30% and don’t qualify for a government check
This post was edited on 6/3/25 at 12:48 pm
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
283259 posts
Posted on 6/3/25 at 12:50 pm to
2020 and 2021 fricked us over permanently.

This is what happens when you listen to pseudo scientists and politicians and ignore economics.
Posted by slidingstop
Member since Jan 2025
713 posts
Posted on 6/3/25 at 12:52 pm to
Dear diary.

Do you actually have a point?
Posted by BamaCoaster
God's Gulf
Member since Apr 2016
6280 posts
Posted on 6/3/25 at 1:08 pm to
quote:

2020 and 2021 fricked us over permanently.

This is what happens when you listen to pseudo scientists and politicians and ignore economics.


Amen.

And remember, inflation is just transitory.
Posted by Saunson69
Stephen the Pirate
Member since May 2023
6831 posts
Posted on 6/3/25 at 1:38 pm to
quote:

We will likely not see a 2007-2008 type real estate market tank yet everyone keeps waiting for it


Disagree there. Over 500,000 more sellers than buyers. Buyers can't afford. That means only 2 things can happen: nobody sells their house if prices stay the same, or they meet market price demand. If someone puts their house up for sale, that means they want to sell. It's not like buying. I've looked at houses and just held off. If you're listing, it means you need to get out and will not likely just keep it absurdly high.

Just doesn't make sense to stay as is. You can sell microwaves on Ebay for $5,000, but doesn't mean anyone is gonna buy. At some point you have to meet where the consumers can afford.
Posted by Jcorye1
Tom Brady = GoAT
Member since Dec 2007
75139 posts
Posted on 6/3/25 at 1:39 pm to
quote:

those were the people who mattered the most


Tough to have labor if you don't want to pay for it.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
30953 posts
Posted on 6/3/25 at 1:44 pm to
Oppsie daisy
This post was edited on 6/3/25 at 1:45 pm
Posted by LemmyLives
Texas
Member since Mar 2019
10427 posts
Posted on 6/3/25 at 1:47 pm to
quote:

.i said they were scared to layoff "significant" amount of employees


Except, they're not scared to do it, and have done it repeatedly, and I'm not even counting internal re-shoring.

quote:

layoff much more surgically

Except, they're not.
Posted by Dire Wolf
bawcomville
Member since Sep 2008
38926 posts
Posted on 6/3/25 at 2:02 pm to
quote:

Disagree there. Over 500,000 more sellers than buyers. Buyers can't afford. That means only 2 things can happen: nobody sells their house if prices stay the same, or they meet market price demand. If someone puts their house up for sale, that means they want to sell. It's not like buying. I've looked at houses and just held off. If you're listing, it means you need to get out and will not likely just keep it absurdly high.



it is kind of a game of chicken. Sellers are more often than not also buyers so they can't take a bath on their house and still be in the market for another. Especially at a higher rate than they likely have. I imagine a lot of the listing out there are just tossing bait and hoping for a bite

A big difference from 08 is that people are sitting on a property for a lot longer than they used to.

quote:

Between 2000 – 2009, the average homeownership duration was only about four-to-five years. It was too short to build real wealth. As of 2025, the average homeownership tenure has risen to roughly 12-13 years according to First American Data & Analytics and Redfin.


quote:

In the 1980s to the early 2000s, the average homeowner tended to stay in their home for around 5-6 years.


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