Not a bad column; it gives me an opening to mention that President Biden's low unemployment numbers aren't actually a good thing in a recession. Productivity is basically Output divided by Input. If Input (in this case, labor capital) increases while Output (GDP, expressed as financial capital output) decreases the result is lowered productivity. Getting out of a recession requires we go in the opposite direction.
Thanks for commenting, Bill! Yes, low unemployment now is definitely not a good thing. The U.S. faces a chronic labor shortage for the foreseeable future. That will hurt productivity.
The current inflation is being causes by supply side issues. Current central bank/monetary policies cannot fix that; and current government/fiscal policies could make it worse.
Not a bad column; it gives me an opening to mention that President Biden's low unemployment numbers aren't actually a good thing in a recession. Productivity is basically Output divided by Input. If Input (in this case, labor capital) increases while Output (GDP, expressed as financial capital output) decreases the result is lowered productivity. Getting out of a recession requires we go in the opposite direction.
Thanks for commenting, Bill! Yes, low unemployment now is definitely not a good thing. The U.S. faces a chronic labor shortage for the foreseeable future. That will hurt productivity.
The current inflation is being causes by supply side issues. Current central bank/monetary policies cannot fix that; and current government/fiscal policies could make it worse.