🚀 go-pugleaf

In article <28040.822891415@pellet.spry.com>,
Marc VanHeyningen <marcvh@spry.com> wrote:
>Thus said CStandley@nesbbx.rain.COM (Charles D. Standley):
>>We need a solid economy with little government interferance so demand for
>>goods will grow. This will in turn cause more employment. When unemployment
>>figures reduce enough, wages will increase. 
>
>No, if unemployment figures reduce the Fed will hike interest rates
>in order to prevent it from getting so low that wages increase (i.e.
>inflation.)

Ditto.  "Full employment" is now defined as between 6-6.5% unemployment.
Anything less than this, the Fed starts slowing down the economy by
raising interest rates as they did in 1994.  I believe the "inflation ceiling"
is about 4% and a more important number to the Fed.  As Clinton pointed
out in his state-of-the-union message, Reagan's misery index- the sum of these
two numbers- is the lowest in 27 years and in the 7-8% range.