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Politics : PRESIDENT GEORGE W. BUSH
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To: DuckTapeSunroof who wrote (617587)9/3/2004 4:26:44 PM
From: Neocon  Read Replies (1) of 769670
 
The thing is, excess liquidity should be signaled by accelerated inflation, as goods and services are bid up. Low inflation suggests balance. You attribute that to cheap imports creating unrealistic perceptions. I do not think that suffices to explain the phenomenon. Yes, improved free trade, and therefore greater economic efficiency, has something to do with it. So does a more favorable tax environment, and deregulation. In other words, business is more efficient. But above and beyond that is the pace of technological change, and the impact of computing and telecommunications on the modern workplace. Productivity is much greater than it was a couple of decades ago.
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