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Getting harder to make the case for inflation...

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8

December 03, 2008 – Comments (4)

Gonna be tough to beat a raise out of the boss this year...

Da release.

Business sector productivity grew at a 1.5 percent annual rate during
the third quarter of 2008, less than the 1.9 percent rate of growth from the
third quarter of 2007 to the third quarter of 2008 and the 2.5 percent
average annual rate from 2000 to 2007.  Productivity growth in the third
quarter was the result of hours worked falling faster than output.  The hours
decline of 3.2 percent was the largest since the fourth quarter of 2001 (4.2
percent), and the output decline of 1.7 percent was the largest since the
third quarter of 2001 (3.1 percent).

        Hourly compensation in the business sector increased 4.2 percent during
the third quarter of 2008, following a 1.2 percent increase in the second
quarter (seasonally adjusted annual rates).  This series includes accrued
wages and salaries, supplements, employer contributions to employee benefit
plans, and taxes.  Real hourly compensation fell 2.4 percent, the fourth
consecutive quarter in which it declined.  This reflected the 6.7 percent
increase in consumer prices during the third quarter, the fastest growth
since a similar increase in the third quarter of 1990.

4 Comments – Post Your Own

#1) On December 03, 2008 at 1:00 PM, Harold71 (21.79) wrote:

What matters is the value of the dollar

See how Iceland is doing.  Their economy collapsed.  So did their currency.

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#2) On December 03, 2008 at 1:35 PM, TMFBent (99.81) wrote:

Comparing Iceland to the U.S is a huge stretch.

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#3) On December 03, 2008 at 1:54 PM, Gemini846 (49.25) wrote:

Here's a psudo inflation scenario for you.

Guy 1 makes 30k a year. His grocieries go down 10% (deflation)

He gets laid off and gets rehired making 20k (deflation)

His groceries are now more of his take home than they were before (perceived inflation).

Does that sum it up?

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#4) On December 03, 2008 at 1:57 PM, Harold71 (21.79) wrote:

Not really...the US is just harder to shove off the cliff...that is all

 

Iceland thought it was the UK

UK thought it was the US

US thought it was the World

 

These currencies are going to approach zero over time for their misdeeds.

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