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Politics : Idea Of The Day
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To: Jerry Olson who wrote (38191)4/6/2001 10:04:23 AM
From: IQBAL LATIF  Read Replies (3) of 50167
 
Higher unemployment, falling profits and falling wages is stagflation,not rising wages or stable wages and falling employment, the problem is the old economy text does not have terms to define a slow down from '30-40%' 'New economy growth rates' to reasonable '10%'. That is the crux of the matter. Remember last year the FED kept insisting seeing the 'strong numbers' that inflation is round the corner, whereas in Dec it dawned on them that it was lsow down not inflation the biggest threat, similarly this rise of income is imprtant in stagflation, we also have rising unemployment but falling wages, here the case is not the same. We are at a point where you may find that this whole new productivity led economy will lead to much higher volatility..
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