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Ehhh, I think you're fudging the causality here and reading your own incorrect perspective into the article. Recessions hit the lowest rungs of the economic la
by chibg10 8y ago
Ehhh, I think you're fudging the causality here and reading your own incorrect perspective into the article.
Recessions hit the lowest rungs of the economic ladder hardest, and those same rungs are last to fully get in on the recovery. Hence, labor's share of GDP tends to be highest at the end of the business cycle... which necessarily coincides with an imminent recession.
- droidist2 8y agoOr is it that when wages rise and inflation kicks in, the Fed raises rates to "cool off" the economy, and then the recession comes?