December 5, 2007

THE DEFLATIONARY EPOCH CONTINUES UNABATED:

Worker productivity rate at fastest pace in 4 years (The Associated Press, December 5, 2007)

Worker productivity roared ahead at the fastest pace in four years in the summer while wage pressures dropped sharply.

The Labor Department reported today that productivity, the amount of output per hour of work, was up at an annual rate of 6.3 percent in the third quarter, the best showing since the summer of 2003, and far bigger than had been expected.

Meanwhile, wage pressures slowed with unit labor costs dropping at a rate of 2 percent in the third quarter, the biggest decline in four years.

Posted by Orrin Judd at December 5, 2007 11:59 AM
Comments

I believe you mean "disinflation".

Everyone, except doom and gloomers and Democrats, loves disinflation in which price inflation slows down. There is inflation but in a low rate. Productivity rises faster than inflation. Workers' wages rise, goods prices hold steady.

Everyone,including Democrats, fears "deflation" in which prices spiral down. Goods lose values, nobody consumes, nobody produces. Doom and gloomers would say "I told you so."

Posted by: ic at December 5, 2007 3:44 PM

No, deflation.

www.brothersjudd.com/index.cfm/fuseaction/reviews.detail/book_id/1369/

Posted by: oj at December 5, 2007 4:58 PM

This is great news. And, it actually represents an upward revision from the first Q3 estimate, which was 4.9%. I have to admit that I thought the 4.9% would get revised, but I thought it would go down. I am pleasantly surprised with this upward revision.

Posted by: Kurt Brouwer at December 5, 2007 8:50 PM

Most Americans like to work. That's the bottom line.

Posted by: Bartman at December 6, 2007 11:47 AM
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