Worth Thinking About
[W]hile previous recessions were part of economic cycles within a certain economy, what we’re going through right now is a painful disruption from that economy to something else. I fear that the flat or declining median wages, however, might well survive the transition — at least so long as unemployment continues to remain as high as it is now. Which is one reason not to worry overmuch about inflation: if consumer spending accounts for 70% of the economy, and consumers don’t have any money, it’s really hard for prices to rise very quickly.
Posted by: donkensler | July 10, 2009 1:27 PM | Report abuse
Posted by: roquelaure_79 | July 10, 2009 1:30 PM | Report abuse
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