This quote is from an article forwarded by Arthur Cordell under the above thread: So here we come upon a truth about one of the "fundamentals" of the U.S. economy. When Greenspan talks about wages rising too fast, what he really means is wages rising at all. In effect, Greenspan is saying that we have an economy that cannot absorb even the slightest wage increase. Yes, the US had it's UP strike and here in Canada we are having our Postal Strike. Labour is finally fed up and willing to push the envelope and demand more wages after years of stagnation. Business screams like a hog being castrated. Those guys in executive boardrooms know that if their costs go up, their earnings go down and when their earnings go down, their stock loses value and when their stock loses value then investors sell and when investors sell, capital dries up. Ergo, the answer is - do not give anyone a raise (except those highly talented managers). In Canada, it has went so far that businesses best partner, the government is legislating a back to work Act that actually specifies what raise the posties will get - so much for bargaining. Thanks for the post Arthur.
