Comments on: Dumb-Money Rally Rolls On

By: admin

admin — Tue, 20 May 2008 19:56:22 +0000

Russ,

It could be either or both. The last productivity report showed that a lot of workers had their hours cut.

Matt

By: Russ

Russ — Tue, 20 May 2008 18:28:47 +0000

Don’t you mean “payrolls” not “paychecks”?

Russ

By: admin

admin — Sun, 18 May 2008 17:19:38 +0000

Yes, inflation is a monetary phenomena. However, many economists refer to rising wages as “wage inflation.” If workers won wage increases over the past year, then flat withholding tax growth indicates loss of jobs.

Matt

By: Larry

Larry — Sun, 18 May 2008 07:19:43 +0000

Inflation is monetary. An increase in the money supply will increase taxes. However, the “Austrians” are debating whether the supply is being inflated or not by Bernanke.

By: admin

admin — Sat, 17 May 2008 17:57:40 +0000

Hi Brian,

Yes, and you could adjust for wage inflation also.

Matt

By: Brian

Brian — Sat, 17 May 2008 16:56:38 +0000

And further adjusting for population or labor force growth of +0.95%, the decline in wages was a huge 2.0% for the past 12 months