The Quit Rate Is A Signal Not A Cause
Someone is really upset that poor people are earning more money.
The quit rate in August set a new record: 4.3 million people quit their jobs for better pay, better work conditions, or human infrastructure support. The stimulus payments, the enhanced unemployment benefits, and child tax credits have added much-needed juice and relief to a struggling economy. And the rentier class complains.
Economist Dean Baker wrote the following a few days ago:
Many in the media are very upset that workers at the bottom end of the pay scale feel secure enough to demand higher pay and better working conditions. Yesterday, I had the pleasure of watching a television anchor, who earns $6 million a year, complain that 3 percent of the workforce quit their job in August. They seemed to find the idea of workers quitting unsatisfactory jobs appalling.
A fair number of pundits have been selling the fear of inflation. According to our best data, we’ve seen an inflation rate of 5.4% in the last few months. Most conservative politicians and pundits, with their eyes on 2022, are pointing to the money pumped into the economy by the government as a primary cause of inflation. But they’re being very selective.
