01-10-2017, 04:56 PM
(01-09-2017, 09:09 AM)SomeGuy Wrote: Warren,
It was me, and the answer is, probably a mixture of both. Given the labor force participation rate, and the regional disparities in job creation, there is probably more slack in the labor market than you think, and other inflationary pressures are so low in the economy right now that a modest rise in inflation wouldn't hurt.
Butting-in: I agree that the labor force is actually a lot looser than it appears in the data. So what? Capitalism is built on maximizing profits, and that may not require anything approaching full employment now or in the future. If unit cost drops dramatically faster than lost sales, even lower volumes may be a net plus. Who in the ownership class really cares that people are struggling to get by? It's not their problem, or so most of them believe. Ask Carl Icahn, DJT's Special Advisor on Regulatory Reform.
Intelligence is not knowledge and knowledge is not wisdom, but they all play well together.