No one is immune to scarcity inflation, BlackRock president: Fasten your seat belts

While economic growth is now roaring, many top economists are trembling with fear as they see the road ahead. Robert Kapito, founder and president of U.S. investment management firm BlackRock, said on March 29 that the “empowered generation” who never sacrificed will see a shortage for the first time in their lives, adding that the world will experience unprecedented Accelerate inflation, “get ready to fasten your seat belts”.

He was referring in particular to the scarcity inflation of the empowered generation, a generation that was born into a wealthier era, who would feel the shortage of goods, housing and workers, who never felt sacrifice, but would soon find out for the first time. Walked into the store and couldn’t get what you wanted.

U.S. inflation is soaring to its highest level in 40 years, including a historic era of labor, product and real estate shortages. But which generation is Kapito talking about? “Business Insider” analyzed that it should not be a baby boom, because the 1970s experienced dramatic price increases, possibly alluding to Generation X. This generation is at the peak of income and therefore loses the most.

But the coverage skewed toward millennials or Gen Z, both of whom saw inflation for the first time. Especially millennials, according to Wells Fargo research, millennials are the generation that feels the most inflationary If you just need to buy a car, drive to commute to pick up and drop off young children, or start a family, you may be buying a house for the first time, and this generation spends the most on household items. Spending less on areas that dodge inflation, such as health care. Most affected by price increases.

To make matters worse, looming inflation is just the latest challenge for a generation that experienced two recessions before turning 40 and a decade of stagnant wage growth after graduation. And they have already entered the workplace, and there is not much room for salary negotiation. On the other hand, the younger generation Z, who entered the society at the beginning, may enjoy the benefits of soaring wages after the epidemic.

Kapito’s comments on the empowered generation quickly sparked a backlash on social media, with many commenting that young people are far poorer and face higher debt, more precarious jobs and climate change than their peers in previous generations A potentially unsurvivable future, where job security drops and the cost of living soars.

BlackRock President Kapito said those who are used to buying everything at the supermarket could soon face scarcity inflation. BlackRock CEO Larry Fink wrote in his annual letter to shareholders that the Russian invasion of Ukraine upended the post-Cold War world order and ended the globalization experienced over the past 30 years. Massive repositioning of supply chains is inherently inflationary. Indicating inflation is particularly worrisome, warning of a dark period ahead for the world economy.

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