Falling prices may be a major concern among hardworking Americans, but BlackRock business executives said today that they are a sign of significant changes in the economy.
In a webinar hosted by BlackRock today, executives presented their views for the remainder of the year, including their views on the so-called economic reforms.
Beginning in the 1984’s, a booming economy came to be called the “great hope” as there was a growing harvest season around the world. At the same time, consumer spending was affecting inflation, he said.
Now, in light of the recent epidemic and other factors, the economy is slowing down to the point of creating restraint, say financiers. Those limits will be the ones that drive value and not hurt consumers.
“It does not matter, now that progress in this environment, which is created by providing diversification of demand … we are seeing an increase in trade between inflation and growth,” said Jean Boivin, director of the BlackRock Investment Institute.
There are two factors that have contributed to this decline. The first is related to the dramatic change in consumer spending patterns. When consumers simply live in their own home, they spend more on property than on work. Alex Brazier, senior vice president of the BlackRock Investment Institute, explained that it is an 18-year change that takes place within 18 months.
The second factor concerns the recruitment problem, particularly in the US, with less than 1.3 billion working people, he said. In addition, there are workers who are unable to find work because the industry is not doing as well as it did before the epidemic.
“The workload is much lower than the working population,” Brazier said.
Referring to the evidence of a change of authority from the capitalist economy to the masses, Brazier mentioned two things. The first is to switch to zero business. This is a move for companies that emit low carbon emissions. These changes often occur faster than companies can carry on, leading to instability.