In an earnings call this week, Yum Brands CEO David Gibbs expressed the confusion many people are feeling as they try to figure out what’s going on with the U.S. economy right now:
“This is truly one of the most complex environments we’ve ever seen in our industry to operate in. Because we’re not just dealing with economic issues like inflation and lapping stimulus and things like that. But also the social issues of people returning to mobility after lockdown, working from home and just the change in consumer patterns.”
Gibbs is right, things are very strange. Is a recession coming or not?
As CNBC reports, there is ample evidence for the “yes” camp, with hiring slowdowns in the tech sector and high inflation. But for the “no” camp, the travel and hospitality industries are hot and can’t find enough workers.
A shrinking economy typically doesn’t come with high inflation and a red-hot labor market.
One theory is that the pandemic shock turned 2020 into an epoch-changing year. And much like the 9/11 terrorist attacks in 2001, the full economic and societal effects won’t be understood for years.
How might those effects manifest? In a decade, how will we look back at the 2020s? Read the full story.
