The Fed started blowing up banks in its attempt to crush worker wages because when you kill a 1,000,000 plus people, disable countless more, force a bunch of early retirements etc you have to jack up rates super high, super fast to overcome wage increases from the resulting labor shortage. People who read the WSJ work at and invest in banks and don’t like to lose their shirts. So, they’re conceding to a little internecine war among the ownership class in the hope that the financiers can squelch the corporate price fixers before the banking system implodes.
> when you kill a 1,000,000 plus people > resulting labor shortage
Alternatively when you kill a bunch of mostly retired and sick people, perhaps you increase unemployment (nurses and rest home workers freed up) and decrease spending (dead people don’t buy services or goods).
Besides, the total number affected is a very low percent of the population, which is less significant than other economic changes over the previous 20 years.
Without some deeper analysis, your cause and effect is purely hypothetical.
