AGF Logo
  • Home
  • Industry and Expert Views
  • Investing and Market Views
  • Capitol Insights
  • Français
  • AGF.com
Skip to content
AGF logo
Insights and Market Perspectives
  • Industry and Expert Views
  • Investing and Market Views
  • Capitol Insights
  • Contributors
  • Français
  • Search
Search
Close
Everyone Wants More

  • Industry and Expert Views

For Print Only Logo
Insights and Market Perspectives

Everyone Wants More

Author: Greg Valliere

September 15, 2022

THE DESIRE TO KEEP PACE WITH INFLATION has workers demanding that they get increased salaries and benefits, which of course will lead to more inflation. Railroad workers are leading the way but everyone wants more.

THE WAGE PORTION of a potential railroad deal is essentially finished. It would grant a staggering 14.1% wage increase immediately, bonuses totaling up to $5,000, and a 24% compounded wage increase over the next five years. This will become the template for union demands, as nurses, teachers and factory workers seek new deals — and employers scramble to pass along price increases to customers.

THE DRIVE FOR GREATER COMPENSATION is paramount for senior citizens, who will get a near-record Cost of Living Adjustment (COLA) in their 2023 Social Security benefits. Experts expect a hike of close to 9% for next year.

THE OUTLOOK: More contracts will be for three years or more, and more wages will be linked to the CPI, as unions flex their muscles. The labor market is exceptionally tight — workers will be in short supply until three factors change:

* Dropouts from the workforce return to work; .

* Extremely generous government benefits, which are a disincentive to returning to work, are scaled back;

* Significant immigration reform is enacted, boosting the work force, but that isn’t remotely imminent.

MEANWHILE, OUR HUNCH IS THAT A RAILROAD STRIKE would be brief. Joe Biden is the most pro-union president in recent decades, and he can call in chits. This week’s focus on inflation will hurt Democrats in close House and Senate races, which will prompt the railroad unions to agree to this very generous deal by the weekend, if not sooner.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

©2023 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

Also Read

  • Investing and Market Views

Downshifting Equities to Neutral

January 17, 2023

  • Investing and Market Views

An Alternative(s) Take on the New Year

January 13, 2023

  • Investing and Market Views

Yes, Markets Are Oversold. But Investors Still Need to Be Cautious

November 24, 2022

  • Investing and Market Views

Are Investors Through the Worst of It Yet?

November 16, 2022

Get perspectives straight to your inbox.

Subscribe now

More articles like this

Greg Valliere, Chief U.S. Policy Strategist

  • Industry and Expert Views

The Most Over-Rated Speech of the Year, Again

Greg Valliere | February 7, 2023

Timely insights from inside Washington.

Read More
Greg Valliere, Chief U.S. Policy Strategist

  • Industry and Expert Views

Why the Balloon Was a Disaster for China; The Incredible Jobs Report

Greg Valliere | February 6, 2023

Timely insights from inside Washington.

Read More
Greg Valliere, Chief U.S. Policy Strategist

  • Industry and Expert Views

U.S. Relations With China Hit Rock Bottom; How Donald Trump Could Rip the GOP Apart

Greg Valliere | February 3, 2023

Timely insights from inside Washington.

Read More
AGF Logo
  • Industry and Expert Views
  • Investing and Market Views
  • Capitol Insights
Follow AGF

AGF Web Site Pages © 2023 AGF Management Limited. All rights reserved.

  • Terms & Conditions
  • Privacy
  • AGF.com