Local Businesses Struggling to Hire Points to Larger Problem Local Businesses Struggling to Find Help Points to Larger Problem

High demand for help and low supply of workers creates a concerning divide.

MICHAEL VILLEGAS: Since Covid, the government has provided income to citizens while not working making it difficult for businesses to compete. Syracuse University Professor and economist, Carl Schramm, is worried that this sets a dangerous precedent of conditioning people to rely on the government.

CARL SCHRAMM: We have a problem here of a very, very strong demand for labor, which will push wages up, which will in fact contribute to the inflationary pressure of the overall economy.

VILLEGAS: Businesses are passing these costs down to consumers by increasing the price of goods and services which may stop people from spending money. Schramm says this could result in an alarming outcome.

SCHRAMM: This eventually will be seen in the collapse of small businesses.

VILLEGAS: Schramm explains this grim prediction and current pattern could be the downfall to the economy. Michael Villegas, NCC News.

SYRACUSE, N.Y. (NCC News) — Local businesses are having a tough time trying to find help. You may have noticed this with “Now Hiring” posters appearing in storefront windows or planted on street corners. These signs may be small in size, but they could be pointing to a larger economic problem.

Syracuse University Professor and economist, Carl Schramm believes the stimulus checks issued to help Americans during the  COVID-19 pandemic may be inviting the unemployed to stay home.

“You watch people actually getting conditioned to not working and relying on the government,” Schramm said. “Once that happens, you create political force for the government to continue these payments, which we’re watching right now.”

Schramm says businesses are raising wages in order to attract workers and that leads to higher prices for the goods and services. Then, consumers reevaluate spending habits. He believes that the economy could be heading toward something called stagflation.

Stagflation is described as a “non-growth economy, with inflation,” Schramm said. “It is about the worst condition an economist can imagine for average people in the economy.”

Schramm predicts the combination will lead to an economic collapse.


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