doug, what evidence do you have that labor markets are tight. Are
wages (excluding CEO salaries and the like) squeezing profits?

On 2/4/07, Eugene Coyle <[EMAIL PROTECTED]> wrote:
Well, that's really my question  "Do we really have tight labor
markets?"  Not in the construction trades, not in manufacturing --
just where are these labor shortages?  Just in the MBA ranks?    I
guess mine isn't a question but rather an assertion:  We don't have
tight labor markets.

Gene Coyle


On Feb 4, 2007, at 6:36 PM, Doug Henwood wrote:

> On Feb 4, 2007, at 6:17 PM, Eugene Coyle wrote:
>
>> I keep reading in the financial press that the Fed is worried about
>> inflation.  Then the articles go on to explain that because of tight
>> labor markets, the Fed is worried about inflation.
>>
>>        I accept that the Fed is worried about inflation -- it
>> always is --
>> and embraces that worry.  But isn't the source of the current worry
>> different from tight labor markets?
>
> It's probably tight labor markets. The Fed doesn't like it when the
> unemployment rate gets too low. In the late 1990s, productivity
> growth was strong - now it's not.
>
> Doug



--
Jim Devine / "The truth is more important than the facts." -- Frank Lloyd Wright

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