Our exclusive interview with Mr. Anthony Chan, chief Economist at JP Morgan Chase, covers the impact of money printing and resulted inflation on workers’ daily life.
Chan believes there is no doubt that more job automation is happening in the near future. “The unemployment rate will be increasing and the US labor force will face more difficult time”.
Chan also feels that managing the social security program will be giving more pressure not necessarily because it is completely broken today but simply because it will be able to support less and less number of people every successive year given current retirement rate.
Although, there is a rumor that the life expectancy of people may not increase, Chan do not believe that is true. With low birth rate and High life expectancy, we will really have to fix the insolvency of social security either by extending the retirement age or any other measures, Chan added.
We are all taught in graduate school that too much money printing causes inflation whether that is fiat money, bitcoin, bank credit etc. But, we learned during the Global financial crisis of 2008 that just having more money does not necessarily create high inflation, if the aggregate demand is weak, shared Chan.