Inflation Isn't All Bad... Right?

The lowest-paid workers are gaining the most at the moment. SPECIAL OPPORTUNITIES [The Oxford Club Special Opportunities]( Note From Senior Managing Editor Rebecca Barshop: Our friends at Monument Traders Alliance are giving away one week of FREE LIVE TRADES during their War Room Open House (October 24-28). These guys are phenomenal. But you don't have to take my word for it. You can see for yourself what makes them so special. There's no cost... and no obligation. (Seriously... put away your credit card.) There are over 1,000 earnings announcements expected that week. So it's going to be a MONSTER week for the market. And you can see exactly how Pro Traders play those types of events all week... 100% LIVE... 100% FREE! [Click here to RSVP and get your spot in the FREE Open House!]( --------------------------------------------------------------- Who Is Benefiting From This Economy? Matt Benjamin, Senior Markets Expert, The Oxford Club [Matt Benajmin] Who could possibly be benefiting from this economy? After all, GDP contracted in the first two quarters of this year. Inflation is running at 8.2% year over year (we just got a new measure of it this week). That's near the fastest pace in decades - and well above the somewhat arbitrary 2% rate we all assume will allow the economy to expand without becoming unstable. And the S&P 500 Index is down a whopping 24% year to date. So you might be tempted to answer the question above with a single word: nobody. But it's not quite true. One group in particular is seeing real gains lately. And that's ordinary American workers. The pandemic drove many Americans out of the workforce. They either became ill (or died) or decided to do something other than work. The labor force participation rate, which measures the percentage of working-age Americans who are either employed or looking for a job, fell from 63.4% to around 60% during the early months of COVID-19. And while it's since rebounded a bit, it's still around 62%, a level we haven't seen since the 1970s. That's given workers a leg up in negotiating better salaries and benefits. And as a result, labor's share of national income (versus the share going to business owners, or capital) has risen significantly in the pandemic's aftermath. [A Bigger Share for Labor]( That's not great for investors, of course. But also consider that if labor's share of GDP falls too low, it tends to cause societal problems, from political unrest and instability to populism and class conflict. In addition, the lowest-paid workers are gaining the most at the moment. [Lowest Paid Are Seeing the Biggest Gains]( Workers in the first income quartile are enjoying the biggest wage gains now. The upper wage limit for these workers is about [$710 a week]( or slightly less than $37,000 a year, according to the Bureau of Labor Statistics. Many of these people work in leisure and hospitality, retail, health services, or construction. And suddenly they're seeing real wage gains, the likes of which they haven't experienced in decades. Yes, inflation is outpacing these wage gains for the moment. But because wages are "sticky down" - that is, they move up with relative ease but move downward with more difficulty - these gains may stick around after the prices of many goods and services come back down. So there are definitely a lot of Americans seeing gains right now, and those gains may last a while. That's certainly something Jerome Powell and his colleagues at the Federal Reserve should consider as they look to raise unemployment and slow wage gains to contain rising prices. Invest wisely, Matt SPONSORED [Introducing the War Room Open House!]( [War Room Open House]( What Is It? One week inside The War Room - totally free! When Is It? October 24-28 You're Invited! Join our one-week FREE PREVIEW (no credit card, no b.s.). [Click Here to RSVP]( [The Oxford Club] You are receiving this email because you subscribed to Oxford Club Special Opportunities. Oxford Club Special Opportunities is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Oxford Club Special Opportunities]( | [Unsubscribe]( © 2022 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com]( Your Legal Questions... Answered What is The Oxford Club? The Oxford Club is a financial publisher with a highly rated track record. We deliver unique and well-researched financial and investment ideas to our Members. What do you do? We share our team of experts' industry knowledge and timely insights with our Members so they have the financial literacy and tools needed to build a rich, fulfilling life. We do not provide any personalized financial advice or advocate the purchase or sale of any security or investment for any specific individual. Instead, the information we share is directed toward a larger audience of all subscribed Members. So you'll make me rich? Maybe! But not exactly. Our goal is to provide the research and information required to help you make you rich. Investment markets have inherent risks, and we can't guarantee future profits. Why should I trust you? We offer information based on what we think will provide the most value to our Members. Our business depends on Members' interest in our ideas and satisfaction with their results. We've been around for 30-plus years because our Members have continually chosen to stay with us (many of them for life). We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications before following an initial recommendation. So I can fire my investment advisor? No! Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.