``I must give him his due. He has considerably cretinized me.'' Lautréamont

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Saturday, August 19, 2006

Hold the Champagne (NYT)

stagnating wages deplored

instead of taken as proof that inflation is low

when the price of oil goes up, that isn't inflation. if the Fed conceals the fact from the economy by printing money, that's inflation

what the economy does when it's done right is cease doing things that are uneconomic with high-priced oil and start doing what replaces those activities.

this means layoffs are necessary and desireable

it's how adaption is done.

adaption does not occur in command economies and they therefore cannot compete with free economies, which quickly start doing what people actually want instead.

one good sign : stagnating wages.

Today’s economy has problems that go beyond price inflation.


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