2/18/04: It gets curiouser and curiouser. Alan Greenspan has indicated that we will hit the historical unemployment rate of 4.5% as the economy continues to recover. Having hit 5.9% deep into the recession, this appears to be good news. However, there is a downside to the new hiring behind the statistics, if the Fed Reserve chief is to be believed. According to Greenspan, worker productivity will decrease as new employees enter the market. One of the biggest drivers in the recovery has been the incredible increase in productivity. It stands to reason that if worker productivity slides, this recovery will be less than robust--and jobs will suffer. On paper everything makes sense. In the real world some of the rationale that is being offered doesn't make any sense at all.
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