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The scariest part of today's grim nonfarm payrolls report, Paul Krugman says, is the plunge in...

Jul. 02, 2009 7:12 PM ETBy: Eli Hoffmann, SA News Editor3 Comments
The scariest part of today's grim nonfarm payrolls report, Paul Krugman says, is the plunge in the rate of wage change over the last three months. "Bear in mind that inflation usually runs below the rate of wage change... so we're really heading into Japanese-style deflation territory."

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Comments (3)

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But the chart shows wages increasing, albeit at a lower rate. This implies moderating inflation, and not deflation.

The argument that wages must rise faster than inflation due to "productivity growth" is specious. Inflation itself is understated and instead reported as "productivity growth", creating a circular reference, and a myth of "increasing productivity" which is really just inflation under another (nicer) moniker.

The Keynesians cannot abide sound money and low inflation, so they keep conjuring up a non-existent deflation issue to justify more "print and scatter" policies.
Paul Krugman is a TOOL... I can't think of anyone more wrong than Krugman, oh wait... Bernake? lol

These clowns are just realizing the Japanese Recessive/Deflationary economy now? I and many others called this a year ago and any money dumped in will bring short term yellow weeds, not green shoots government welfare. The minute the Japanese cut off the corporate welfare to normal the deficits, the economy went right back into a recession. They even warned the so-called US experts not to influx, but to liquidate the failures, slice and dice the assets and get it over with. Nope, look's like the conspiracy theorists have this one right... because no body can be as stupid as Turbo Tax Timmy, Bernake, Krugman, Liesman, Summers, Herszog together to throw Trillions away. What the heck, it' only the people's money and there's only $57 Trillion in obligations.

Go Report to your Masters of the Universe: Goldman Sachs, JP Morgan Chase, Rothchild, Meici, et al Done Well Done... the US economy is finished.

Truth is Treason in an Empire of Lies...
nobby73 profile picture
Surely, the various signs are clear. We have unemployment payments outpacing job losses and wages falling faster than payrolls. Given, for example the bank closures and mergers amongst other things, what is happening is we are losing higher paid jobs, older people in middle management, white collar jobs that have remained relatively protected through the previous downturns. There are so few manufacturing jobs left, now it's the guys in the suits. Getting this sort of person back into employment is going to be very difficult.

This brings huge damage to tax receipts, both income and sales taxes, which is supposed to be the source of revenue for debt payments. How is the government ever going to bring the budget under control, other than monetization. We may be seeing deflation of certain assets, but the fall in the Dollar is going to raise the prices for anything that comes from overseas...
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