The Prelude to Double-Digit Inflation

Discussion in 'Economics' started by KenL, May 13, 2008.

  1. RhinoGG

    RhinoGG Guest

    Or, you could give us a summary. This "watershed event " is something you can share with us all.
     
    #31     May 14, 2008
  2. GTS

    GTS

    Whatever you say ShoeshineBoy. Its good to know that you speak for all of corporate America.

    Its been my experience that most full-time employees do get raises every year, the amount varies but they get a raise nonetheless. I guess I must live in a different world than you.
     
    #32     May 14, 2008
  3. The only watershed event I foresee is the floods of tears of the gold bugs when they realize their gold stocks are tanking.
     
    #33     May 14, 2008
  4. achilles28

    achilles28

    Or when inflation is high and employees demand hikes to compensate.

    Was the economy running hot in 1970s stagflation?

    Nope.

    So why did Nixon impose wage and price controls.

    Two sides to that coin.
     
    #34     May 14, 2008
  5. Not sure if you're aware of it, but US GDP was expanding rapidly 1970-1973 with unemployment dropping under 5%. Such conditions can spark unit labor costs to increase as labor becomes a rare commodity.

    Unlike commodity costs, labor cost increases tend to be 'sticky' and very hard to get out of the system.
     
    #35     May 14, 2008
  6. 'zactly...
     
    #36     May 14, 2008
  7. KenL

    KenL

    achilles28,
    Appreciate your contribution to the spirited discussion. But I have to slap you across the mouth to remind you that the use of racial slurs will not be tolerated on my thread.
     
    #37     May 14, 2008
  8. We'll get our standard 2-3 % just like always. But that's it in general.

    This very subject, by the way, was covered on the front page of the Money and Investing section of the WSJ today. The title of article was something like, "Inflation May Not Be As Severe As You Think" and it went into this very subject paralleling, I hate to say, just what I am saying: any increased inflation would probably cool the economy and put the brakes on further inflation,etc.
     
    #38     May 14, 2008