Thursday, May 26, 2011

Unemployment and Inflation

Figuring in todays news is notices of "unexpectedly" increasing unemployment claims, coupled with complaints from the government that people aren't spending enough money to get the economy going again.

A journalist might wonder if there wasn't a connection here. A party hack would issue a clarion call to the peasants to get out there and help make the economy move.

The economists are fretting that you folks are spending too much on food and gas, and not enough on i-pads and Chevy Volts. Any day now I expect to hear a story that in spite of record spending on food, obesity is actually declining, pointing up the positive side of pounding the pavement in search of work.

Second quarter growth is currently being predicted at somewhere between 2.5 and 3.5%. I'm betting that by July 1, the "latest revised figures" will be in the neighborhood of 1.5%.

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