FranG
23 Jan 2007, 11:02 PM
In case you have doubts that are economy is going down, a new MSNBC article is reporting that labor productivity in the U.S. is at its lowest point in 10 years. All of the manufacturing jobs have been offshored, but we were able to hide behind the service industry for a while (low paying service jobs) but with the slowing of that segment, a grim picture is painted. For those familiar with the product life cycle (marketing), the U.S. as a product is in the decline phase. The economy is on it's last leg and that's the reason for all the aggression in the last few years. They are trying desperately to avoid the unavoidable. Extortion is the only way the U.S. can remain significant (and productive by stealing).
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The US economy last year recorded its lowest rate of labour productivity growth in more than a decade, with growth in output per hour worked falling behind the EU and Japan. The fall casts further doubt on the ability of the Federal Reserve to cut interest rates as the US economy slows.
Research to be published on Tuesday by the Conference Board, the international business organisation, shows that US labour productivity in the whole economy grew by 1.4 per cent in 2006 as slower economic growth was combined with a rapid rise in employment.
Gail Fosler, the chief economist of the Conference Board, told the Financial Times that the fall in productivity growth was unlikely to be cyclical and the result of weaker gains in services' industries, raising "concerns about the long-lasting productivity impact of information and communications technology".
If weak productivity growth continues, she said, "even in a slow growth environment, the US economy will be performing close to its potential", restricting the Fed's ability to cut interest rates. Read more... (http://www.msnbc.msn.com/id/16758679/)
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The US economy last year recorded its lowest rate of labour productivity growth in more than a decade, with growth in output per hour worked falling behind the EU and Japan. The fall casts further doubt on the ability of the Federal Reserve to cut interest rates as the US economy slows.
Research to be published on Tuesday by the Conference Board, the international business organisation, shows that US labour productivity in the whole economy grew by 1.4 per cent in 2006 as slower economic growth was combined with a rapid rise in employment.
Gail Fosler, the chief economist of the Conference Board, told the Financial Times that the fall in productivity growth was unlikely to be cyclical and the result of weaker gains in services' industries, raising "concerns about the long-lasting productivity impact of information and communications technology".
If weak productivity growth continues, she said, "even in a slow growth environment, the US economy will be performing close to its potential", restricting the Fed's ability to cut interest rates. Read more... (http://www.msnbc.msn.com/id/16758679/)