Eurodollar University Everyone Is Missing the Real Story
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May 14, 2025 Microsoft's layoffs signal deeper economic challenges despite low inflation reports. The discussion delves into how weakened consumer spending affects pricing strategies and job growth discrepancies. Experts critique mainstream economic narratives, revealing a fragile labor market and the illusion of recovery. They highlight that true economic health is undermined by productivity issues and lingering vulnerabilities from the pandemic. Overall, the conversation invites listeners to reconsider the actual state of the economy beyond surface-level headlines.
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Microsoft Layoffs Signal Economic Strain
- Microsoft cutting 3% of its workforce signals even a strong company struggles with cost pressures.
- If Microsoft needs cost cuts, weaker businesses face deeper layoffs and economic weakness.
Low CPI Reveals Economic Weakness
- The April 2025 CPI shows very low inflation despite tariffs, signaling weak consumer demand.
- Businesses cannot pass higher costs to consumers, forcing cuts elsewhere, often in jobs.
Tariff Cost Absorption Explained
- Retailers absorbing tariff costs reflects inability, not willingness, to raise prices.
- Weak consumer spending limits businesses' ability to pass on higher import costs, suppressing inflation.