> Workers will have less disposable income to spend, so economic growth will slow down. Yes, Karl Marx noted this a century and a half ago. > Workers will be m

> Workers will have less disposable income to spend, so economic growth will slow down. Yes, Karl Marx noted this a century and a half ago. > Workers will be more likely to leave their jobs if offered a salary that's just a few percent higher The current unemployment rate is 7.2%. From 1987 to 2007, there was a 14 month period circa 1992 where unemployment was 7.2% or higher, otherwise, it was always lower. Unemployment is at historic highs, not really a time when companies have to raise their salaries to attract workers. Also, industrial capacity is at historic lows ( http://monthlyreview.org/2008/12/01/financial-implosion-and-stagnation http://monthlyreview.org/2008/12/01/financial-implosion-and-... ). Just think of the anecdotal discussion on HN and elsewhere about the VC crunch. Capital is sitting on the sidelines - just look at the industrial utility chart. Companies aren't using the capacity they have, never mind new investment.