Yong Kim is the CEO and co-founder of Wonolo, an on-demand job marketplace that connects workers to jobs posted by businesses across the US.
It’s been over a decade since the country’s last financial crisis. Since then, we’ve mainly been experiencing a long run of growth. We’ve also managed to avoid cyclical downturns as the economy has continued to heat up.
Over the last decade, the government kept the interest rate low to boost the economy. The government also poured $2.3 trillion of stimulus into the economy during the pandemic, which resulted in a negative real interest rate. When interest rates are low, consumers typically buy more, which in turn stimulates the economy. However, in this case, while consumer demand continued to grow steadily, many businesses were not able to maintain a steady supply of goods due to a number of factors, including supply chain issues,