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alt. rock, advertising, shopping, middle aged persons, bad, cop killer, megarad, atmosphere music song lyrics, refer, unix, film, pam\'shouse blend, mom and son sex., jack owens, hobby photography, liberal news media, But why does the cause of the inflation change the effect? --t "There is no pain in death; it only hurts to die." -Quicksand  [ ...reply just to this | comment on the story... | next new ] 138.  Re: Ivory towers by Megabazus    drums   at drums Fri 2 Sep 5:22pmscore of 1   in reply to comment 137   I'm glad you asked because I don't think I made this sufficiently clear. When demand-pull inflation is in effect, the primary cause is drums low unemployment. This means fewer people living off social welfare programs, and more production in the economy. Greater competition for labor between firms during these periods of low unemployment is what keeps wages rising along with inflation. In a sense, a high unemployment rate is a tool for firms to keep wages low. When inflation driven by cost-push (rising oil prices) is in effect, prices rise without any accompanying gains in productivity or wages (there is no greater competition for labor just because oil prices went up.)
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"Since 1970 the ISM manufacturing index has averaged 52.5, while since 1990 the index has averaged is 51.9." It has been above 50 for 27 straight months, "the longest expansion in the sector in more than 16 years." Corporate profits are up. The stock market is flat this year after a nice gain last year. Interest rates are low. The economy is doing fine. Not great, but not bad. --t "There pam\'shouse blend is no pam\'shouse blend pain in death; it only hurts to die." pam\'shouse blend -Quicksand  [ ...reply just to this | comment on the story... | next new ] 137.  Re: Ivory towers by 0tim0      at Fri 2 Sep 4:50pmscore of 1   in reply to comment 131   There are two types of inflation. Cost-push, and demand-pull. Well that makes me feel a little better. Though, I must admit, I'm still a little troubled — probably since I'm no economist.
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