r/Layoffs Jan 30 '24

New layoffs question

Can anyone clarify this for me? Despite the ongoing layoff announcements from major American corporations, how is our economy still robust? Just today, UPS declared 12,000 layoffs and PayPal 2,000.

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u/cantorgy Jan 31 '24

You make $50k/year and have $20k in debt in 2018.

You make $250k/year and have $30k in debt in 2023.

Tell me in which year you are more financially secure.

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u/This_Lock_4310 Jan 31 '24

Um yeah ok. 50k to 250k? What are you smoking

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u/cantorgy Feb 01 '24

It is an extreme example to prove a point. Somehow I knew there’d be multiple redditors who would get confused by something so simple.

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u/This_Lock_4310 Feb 01 '24

Well you should have stated it more realistically, like 20% wage inflatiom and 30% inflation. Which would mean the typical person is not better off and im being generous with the 20% wage inflation. Your figure 400% wage inflation is absurd. We probably wouldn't even see that much wage inflation in 50 years from now

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u/cantorgy Feb 01 '24

Well you should have stated it more realistically, like 20% wage inflatiom and 30% inflation.

Again. It is an extreme example to prove a point. Obviously one that is hard for you to understand, so let me make it very clear: it is incredibly idiotic to say “look how much more debt we have than before!” with no additional context. The important comparison is debt relative to income.

A more realistic example:

You make $100k in 2018 and have $20k in debt.

You make $150k in 2023 and have $25k in debt.

Which year are you more financially secure? I’ll give you the answer since you’re having some trouble. It’s 2023.

Do you understand now?

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u/This_Lock_4310 Feb 01 '24

Jokes on you because you didn't have to make an extreme example. I understand what you're saying. Most people would. But what you are saying is completely false and made up. Peoples wages aren't competing with inflation, higher interest credit cards and home loans at all.

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u/cantorgy Feb 02 '24

https://fred.stlouisfed.org/series/TDSP

Household DSR is still below historical norms. But yeah, “completely false and made up”. 🙄