The current narrative is that inflation is down and all of our inflationary problems will soon be part of the distant past but there are things happening right now that should have you worried.
First, CNBC is reporting that United has agreed to 40% raises for its pilots.
United Airlines and its pilots’ union have agreed to a preliminary labor deal that includes pay increases of as much as 40.2% over four years, ending months of tense negotiations and airport pickets.
CNBC.com
This should come as no shock to regular readers of the Econonaut. Back in December of 2021 we wrote, Boomer Consequences: Pilots, Truckers, Nursing... and noted back then there was a growing shortage of pilots and there would be consequences at some point.
The pain doesn’t stop there because currently, the teamsters are poised to go on strike at the end of the month and once the situation is resolved, it will likely mean higher pay, in some form, for the strikers. You can read about the issues and problems that may arise from a strike here.
And currently, there is a strike in progress for writers and actors that threaten to shutdown all entertainment production for the foreseeable future.
We suspect if these strikes are successful, they will spread to other industries such as teaching, nursing, and others which will result in higher wages and a resurgence of inflation. Stay tuned, stay profitable and stay solvent…