Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
“Regulatory capture” is one of the key forces behind the long-term trend of growing inequality.
Thanks to @friedberg & @theallinpod for inviting me to speak. One key phrase from Stigler is so important, "… leading to a net loss for society." It's not just that these lobby efforts have undo influence, its that this influence causes specific harm to society. https://t.co/TgDINL8vgQ
— Bill Gurley (@bgurley) September 17, 2023
But rising labor unrest suggests we may have already passed the breaking point in regards to both.
'American workers are striking at a pace not seen in nearly a quarter-century.' https://t.co/RO8D4IbPai pic.twitter.com/ko3wpncwMv
— Jesse Felder (@jessefelder) September 18, 2023
If that is indeed the case, it carries important implications for inflation.
'The longer inflation stays higher, the more power unions have. And the more power unions have, the more momentum inflation has.' https://t.co/ulo64rQ354 by @inflation_guy pic.twitter.com/17jVJfLl5n
— Jesse Felder (@jessefelder) September 19, 2023
This is one reason episodes of high inflation are typically more difficult to “resolve” than markets may currently expect.
"Only in 60% of episodes was inflation brought back down (or 'resolved') within 5 years. Most unresolved episodes involved 'premature celebrations', where inflation declined initially, only to plateau at an elevated level or re-accelerate." https://t.co/xhXw54saaW
— Jesse Felder (@jessefelder) September 18, 2023
And this may require investors adapt to an entirely unfamiliar landscape.
'Many investors' full history has been solely defined by the Great Moderation backdrop. Assuming a transition to a more temperamental era, the investing landscape is likely to be changed.' https://t.co/VaTDfyioWZ by @LizAnnSonders pic.twitter.com/JmxvPgajIb
— Jesse Felder (@jessefelder) September 19, 2023
Thanks for reading and have a great weekend!
