http://biz.yahoo.com/ap/080604/bernanke.html "We see little indication today of the beginnings of a 1970s-style wage-price spiral, in which wages and prices chased each other ever upward," Bernanke said at Harvard." That's because we outsourced all your jobs overseas you little sheep. Try getting your wages to rise and chase prices when you can't even get a job. Oh - and that retraining is on the way...
Unions - unlike in Europe - are essentially destroyed and powerless in the US. The inflation hawks in Europe are scared shitless of a wage price spiral for a good reason and this would hurt medium term growth over the next couple years. I think longterm the low wage inflation should be a positive for economic growth and unit labor cost in the US. Maybe not so good for short term disposable income.
A wage price hike spiral is exactly what the US needs because people could pay down liabilities. Otherwise the banking system is going to keep collapsing.
the economy grew 50% in the last ten 10 years (according to their numbers) and incomes were flat what's the sense of the economic growth if people earn less?
Its funny, Bernanke has lost all credibility with me. I'll read the bullet points of what he said, but honestly I could care less. No inflation, positive GDP, whatever... I should say ignoring the Paulson/Bernanke lying dream team. Pretty consistent for the Bush administration tho.
The wage inflation is taking place in China so its effect will be booked in a different column, that's all. Bernanke is such an academic buffoon it is scary that he has even puppet status at the Fed. It seems to have [conveniently?] escaped the attention of both Greensenile and Ben Buffoon that US corporations now manufacture in China and that this might be distorting figures such as productivity per "US" worker etc.
Don't be mad - your retraining is on the way! Wait for it......wait for it.... hang on....it's almost here.... wait for it....
Again more propaganda/lies. The fact is that what gets exported overseas is a LEVEL of ability, regardless of the particular industry, so it is pointless retraining people as you can only retrain them sideways in their level - which is gone.
Wrong! Factory workers can be retrained to be engineers and biotechnology technicians! They can then be hired for the same pay as someone overseas who can also do that job (in exchange-rate parity with their overseas counterpart of course). Wait - make that paid LESS that your overseas counterpart. Competition, you know.... Just wait for your training. Wait for it....it's coming....wait for it.....here it comes....wait for it....