Employment Cost Index will show deceleration is rise – another sign of underemployment driven stagflation
Alan Hersey
Oct. 31, 2006

The employment cost index report is due shortly today. It will show an increase of 0.8% while the same was 0.9% last month. It is another manifestation of underemployment and stagflation. The economy is growing at 1.6% while inflation is above 2.5%. The real measure of inflation considering housing cost, medical insurance premium cost and increases in college tuition are far higher – in the range of 3 to 5%. In other world inflation adjusted growth is lower than ever.

The most prominent signs of stagflation comes from the inadequate rise in wages while employment is kept at a very level. That is exactly what is happening now. The inherited ‘less than smart’ money is failing to rejuvenate the economy in spite of all kinds of fiscal stimulus.

Employment Cost Index will show deceleration is rise – another sign of underemployment driven stagflation
Alan Hersey
The most prominent signs of stagflation comes from the inadequate rise in wages while employment is kept at a very level. That is exactly what is happening now.
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