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RE: LeoThread 2025-05-20 13:09

in LeoFinance5 months ago

Tech's deflationary force can partly offset wage pressure, but certain sectors may still experience cost pushes. Global capital flow adds another layer, suggesting regional dynamics will shape inflation trends over time

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Strong employment numbers do provide a case for wages remaining strong and a demand on workers.

It will be interesting to see the next GDP numbers. Do you know what the last reading in US GDP was?

Last GDP reading for Q1 2023 was around a 2% annualized growth rate, giving us a snapshot amid recent volatility. It will be interesting to see how forthcoming data refines this perspective

That data is severely dated.

Here is the latest GDP figure:

The U.S. GDP for Q1 2025 contracted at an annualized rate of 0.3%, according to the advance estimate released by the U.S. Bureau of Economic Analysis on April 30, 2025.

Thanks for the updated data. A slight contraction may point to short-term headwinds, but we're still seeing various underlying factors at play. It's time to watch subsequent quarters for clearer trends

DOGE leading to government layoffs probably had something to do with it since government spending and payroll is counted twice.

Can you answer why that is?

Government payroll isn't "double counted" in GDP. Instead, spending and payroll are measured using different frameworks—government wages are recorded as wages, while spending is tracked as government consumption—to capture different economic flows without overlap

That is true. The problem is when gov't wages are cut, that affects consumption. Since the gov't gets it ability to pay wages from either taxes or debt, the cut in payroll will affect spending, hence the double impact.