Richard Thaler, a Nobel Prize-winning economist, sees no signs of a deep recession in the United States. The expert says inflation could fade within a year, Business Insider reported.
“I don’t see anything that resembles a recession. We have record low unemployment and record high vacancies. That looks like a strong economy,” Mr. Thaler noted. He is enthusiastic about wage increases, especially for low-income employees, as this is the best way to reduce social inequality.
The American economy cannot be described as being in a recession based on two consecutive quarters of declining GDP, the winner of the Nobel Prize in Economics in 2017 underscored.
Speaking about persistent inflation, the behavioral economist attributed recent price increases in the United States to the Ukrainian conflict and new COVID-19 outbreaks in China disrupting global supply chains. "Let's suppose that a year from now, the war in Ukraine is over and COVID-19 has left China, I could see deflation," the principal at Fuller & Thaler Asset Management said.
According to Mr. Thaler, the widening US income gap could be leveled up by higher wages for low-paid workers. Currently, there is a shortage of labor in the US jobs market, so wages are likely to rise.
