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Sorry I don't believe this. If it is true that we are close to maximum employment, there would be more pressure for wage inflation and more overall inflation. I
by hristov 13y ago
Sorry I don't believe this. If it is true that we are close to maximum employment, there would be more pressure for wage inflation and more overall inflation. In places other than the bay area (which is its own world) inflation is really low nowadays. If you take into account various promotions, many prices are actually lower than last year.
And other than in the STEM fields, there is pretty much no wage inflation. If job growth increases and wages increase, I guarantee you we will see many people entering the work force. No-one likes poverty.
- 1457389 13y agoDid you not comprehend the portion of the article which outlined a supply side problem? You don't see higher wages in that kind of scenario, you see a steady diminishing in the market.
- deleted 13y ago[deleted]
- pessimizer 13y agoThis is the Economist, and this is the party line. The economy was destroyed due to a demand crisis that we haven't even made an attempt to recover from yet. Crying about a supply problem is silly. It's like when they complain about the graying of America, and how there will be too many seniors to too few workers - and in the next breath about permanent structural unemployment. Both not enough and too many workers, depending on the argument they're trying to make.