nvm

[knez]

No. It means that there are a lot of competing factors. And you also have to consider how much worse off they would be in the long run with deflation.

yea, thing getting cheaper
it's a god damn misery

Because if we had a general deflation it would be extremely hard to avoid a depression.

only in a keynesian world

And if we had a depression those people in the medium to low to bottom would living in cardboard boxes come winter.

US politics is doing a great job kickstarting one, so
what else is new?

 

[Mise]

But what does that lead you to think is in effect? Inflation or deflation?

For the purposes of fiscal and monetary policy, deflation. For the purposes of every day living, obviously inflation.

 

[Cutlass]

only in a keynesian world

Which, of course, is the only world we happen to have.

 

[mrt144]

Which, of course, is the only world we happen to have.

Well, I think his is more of a critique of how Keynesian methodology to counter cyclical government action is abused and held up in name only to justify government waste on constituent pork.

 

[Cutlass]

Well, I think his is more of a critique of how Keynesian methodology to counter cyclical government action is abused and held up in name only to justify government waste on constituent pork.

Hey, if government is going to mismanage and abuse justifications for it, they'll always find some excuse. If not this one, then some other.

 

[Integral]

The tax and welfare portions of the stimulus are having an effect, sort of.

Bureau of Economic Analysis
PERSONAL INCOME AND OUTLAYS
May 2009

Personal income increased $167.1 billion, or 1.4 percent, and disposable personal income (DPI)
increased $178.1 billion, or 1.6 percent, in May, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $25.1 billion, or 0.3 percent. In April, personal income increased $78.3 billion, or 0.7 percent, DPI increased $140.0 billion, or 1.3 percent, and PCE increased $1.0 billion, or less than 0.1 percent, based on revised estimates. The pattern of changes in personal income and in DPI reflect, in part, the pattern of increased government social benefit payments associated with the American Recovery and Reinvestment Act of 2009.

Real DPI increased 1.6 percent in May, compared with an increase of 1.2 percent in April. Real PCE increased 0.2 percent, in contrast to a decrease of 0.1 percent in April.

The May change in DPI was boosted as a result of provisions of the American Recovery and Reinvestment Act of 2009. Provisions of the Act reduced personal current taxes and increased government social benefit payments. Excluding these special factors, which are discussed more fully below, DPI increased $20.6 billion, or 0.2 percent, in May, following an increase of $101.3 billion, or 0.9 percent, in April.

Wages and salaries
Private wage and salary disbursements decreased $12.4 billion in May, compared with a decrease of $0.7 billion in April. Goods-producing industries' payrolls decreased $12.9 billion, compared with a decrease of $12.2 billion; manufacturing payrolls decreased $9.8 billion, compared with a decrease of $4.9 billion. Services-producing industries' payrolls increased $0.5 billion, compared with an increase of $11.5 billion. Government wage and salary disbursements increased $3.9 billion, compared with an increase of $5.7 billion.

 

[Godwynn]

Deutsche Welle

Fresh figures show that Germany's June unemployment sank slightly compared with the previous month to 8.1 percent.

German unemployment for June sank slightly on figures for the previous month, retreating by 48,000 to 3.410 million, according to the Federal Labor Agency figures. That represents a drop of 0.1 percent, to a seasonally adjusted jobless rate of 8.1 percent.

The figures had been the source of fevered speculation prior to their release, as Germany prepares for general elections in September. A rise in unemployment could have boded ill for Chancellor Merkel and her Christian Democrats (CDU).

Government-subsidized short-term work contracts have so far helped companies steer clear of mass layoffs despite weakening export markets and declining consumer confidence at home.

The slight fall in German unemployment reinforces recent economic sentiment surveys pointing to expectations of a turnaround in both the European and the German economies as the year progresses.

Experts have, however warned that unemployment figures could top 4.1 million by the end of 2009, if the German economy follows predictions and contracts by more than 6 percent this year.

There are global concerns that the economic crisis could manifest itself as a jobs crisis by year's end.