Friday, March 23, 2018

Always Stoke Fears

When more than one interpretation can me made, or more than one conclusion drawn, from a statement, the media and/or pundits will always chose the one that stokes fear.

Form a March 20th New York Times story about things that go bump in the night could derail the economic recovery, “In February, markets tumbled after a report showing unexpectedly strong wage growth revived long-dormant fears of inflation.”

Strong wage growth posed as a negative for business due to inflation. Given that consumer spending is 70% of our economy, and that consumers are wage earners, why was strong wage growth not seen as a fuel which would increase consumer spending?

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