U.S. employers added a jaw-dropping 528,000 jobs in July, far more than expected, and wages jumped higher than expected—and yet the number of people working or looking for work declined. Where is everyone?
Like the famous cartoon character Wimpy who promises to pay on Tuesday for a hamburger today, Sen. Joe Manchin's inflation bill promises to pay for all its extra spending today with savings sometime in the future.
When inflation increases the cost of necessities like food and energy, it draws spending away from other parts of the economy. This dynamic – often referred to as the “inflation tax” – is now expected to take a big bite out of Walmart’s earnings.