I'd add that worker productivity in France & Germany is higher because employers would rather increase production by adding capital instead of labour, even if the latter is cheaper. At least they can shut the machines off if demand goes down.
sourav
· 3 years ago
Bravo!
Aaron Krowne
· 3 years ago
Sadly, as far as the economic establishment is concerned, your most debatable crystal-ball truth is that an increase in money supply will lead to inflation.
The fact that no one understands this allows the Fed to play its shell game of pumping up money supply to enrich the government and the financial industry, then treating the resulting inflation (which largely befalls the less-well-to-do) as a natural disaster.
cb
· 3 years ago
Agree w/ everything, but it should be noted that while the overall level of productivity might be higher in Europe due labor market restrictions, the numbers we see everyday are changes in productivity, which will be higher in the US, for example.
It's amazing how many people confuse level with changes in level.
iceberg
· 3 years ago
Here is my prediction:
Nobody listens.
Jon Henke
· 3 years ago
Good article, Don. It inspired me to imagine what it would be like if grocery stores were run like schools...
http://www.qando.net/Details.aspx?Entry=3855
JD
· 3 years ago
Dr. Don Boudreaux,
Once again, you knocked one out of the park, but sadly I believe that cb might have gotten it right.
Henri Hein
· 3 years ago
Nice.
The last bullet point seems to be a regular prediction, not a pattern prediction, though.
All Comments
Well done as usual, thanks Dr. Boudreaux!
I'd add that worker productivity in France & Germany is higher because employers would rather increase production by adding capital instead of labour, even if the latter is cheaper. At least they can shut the machines off if demand goes down.
Bravo!
Sadly, as far as the economic establishment is concerned, your most debatable crystal-ball truth is that an increase in money supply will lead to inflation.
The fact that no one understands this allows the Fed to play its shell game of pumping up money supply to enrich the government and the financial industry, then treating the resulting inflation (which largely befalls the less-well-to-do) as a natural disaster.
Agree w/ everything, but it should be noted that while the overall level of productivity might be higher in Europe due labor market restrictions, the numbers we see everyday are changes in productivity, which will be higher in the US, for example.
It's amazing how many people confuse level with changes in level.
Here is my prediction:
Nobody listens.
Good article, Don. It inspired me to imagine what it would be like if grocery stores were run like schools...
http://www.qando.net/Details.aspx?Entry=3855
Dr. Don Boudreaux,
Once again, you knocked one out of the park, but sadly I believe that cb might have gotten it right.
Nice.
The last bullet point seems to be a regular prediction, not a pattern prediction, though.