Saturday, September 13, 2003

The New York Times - always looking for the black cloud

Maybe it's just me, but this story in the NYT has a weird cadence. The headline "Rapid Growth Seen for U.S. Economy" would seem like good news, but the Times can't bear to let a single sentence in the article go by without reminding readers that job growth is still projected to be flat.

And why is job growth stagnant? For the same reasons I cited below - U.S. worker productivity is way up:

The incongruous pattern of rapid growth with a stagnant job market stems primarily from an extraordinary gain in productivity, which has allowed companies to produce far more goods with far fewer people.

If companies can produce more and increase profits, eventually it will lead to increased wages and hiring. Employment has always been a lagging economic indicator - just so long as it doesn't lag too much.

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