Kingsview CIO Scott Martin discusses the gap between wage growth and inflation growth, plus the price of inflation at the grocery store.
Program: Fox Business Tonight
Station: Fox Business News
BRIAN BRENBERG: Well, let’s bring back Scott Martin Scott, I know you’re not buying cheaper cuts of meat, but we’re getting to the point where all these price hikes have to start really cutting into the health of the economy in terms of growth. Scott, we’ve seen a lot of spending. The economy has sort of held its own through all this. But at what point in next year the consumer has run out of steam? And businesses are stuck now with people not buying things because prices have gone up so much?
SCOTT MARTIN: Yeah, there’s a tipping point soon, and you can see that in some of the wage growth numbers vis a vis the inflation numbers. Brian, whether you look at CPI or the deflator within GDP because you start to see the gap widen between the wage growth and the inflation growth. Now you mentioned on what I’m spending my money on my man. Here’s the thing you talk about growth. The fact that all this stuff costs more is actually helping or alleviating the growth that I would usually be having in my waistline right now because I’m spending the same amount of money at the grocery store, but not eating as much. So it’s actually maybe doing some of us a favor. When we did it, we never dieted over the holidays. Now you’re kind of doing it by default.
BRENBERG: Well, apparently you can’t get into gyms anymore in places like New York unless you’ve got your vax card and all this stuff. So I guess the solution is paying more for your food. You won’t eat as much and maybe you are looking thin and good, my friend Scott. It’s always good to see you. Always good to get your perspective on the economy and all sorts of things. Thanks for showing up today.
MARTIN: See you!