4 ms·
Right but traditional inflation fears might be overblown... everything is basically manufactured in China or other low wage countries now. Food production is h
by sjg007 9y ago
Right but traditional inflation fears might be overblown... everything is basically manufactured in China or other low wage countries now. Food production is highly mechanized. And most jobs are in the service sector. All I can think of is that inflation manifests in insurance, healthcare, and housing costs.
- opportune 9y agoProductivity can still be measured in service, although in certain cases abstractly, but for example a barber is a service worker with pretty measurable productivity. I think inflation can still occur within the classical model wrt the service sector. An example being that a restaurant has trouble keeping dishwasher positions filled, incentivizing them to increase dishwasher wages, requiring higher menu prices to compensate. As long as the US continues to maintain a comparative advantage in certain industries (e.g. software) I see no reason why they will be immune to wage inflation either. In fact this is arguably already occurring