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May 7, 2008

USA Productivity Shows Resilience

Ed: It's official - no recession. Productivity is GNP (Gross National Output) divided by labor costs. How does higher prices and lower wages translate into growth?

Futures Edge Lower on Inflation Jitters

WSJ.com: What's News US
Stock futures were marginally lower, with inflation jitters taking center stage as oil remained near record highs ahead of data on labor costs and energy inventories.

Productivity Shows Resilience

WSJ.com: What's News US
Productivity rose 2.2% in the first quarter, starting the year on unexpectedly firm footing thanks to a jump in the manufacturing sector. The report suggests firms adjusted to the slowdown by shedding workers and cutting back on hours.

 Invisible Hand of Economics

  • USA consumers consumed way too much - saved nothing. Households borrowed using mortgages to pay for current expenditures. 
  • Higher prices of imported and transported goods slowed consumption. Lower value of the dollar made imported goods more expensive.
  • Thanks to technology, USA businesses operate globally and adapt quickly to change. We export more, import less - leading to improved GNP, while lowering consumption expenditures. (i.e. Google, Yahoo, and Microsoft represent net exporters.)
  • The lower dollar led to more USA travel, and less foreign travel.
Higher productivity through better net exports is the key for the future growth of average incomes. The invisible hand regulates global economics - although at the high cost of personal pain during the transition.
APR 24, 2008

Web 2.0 is Green, Recession-Proof - The Macroeconomic View

How does the recession tie with the green economy and increased shift toward online advertising? In the early 70's, the sudden shift of oil prices caused severe dislocations. Here is the macroeconomic view for 2008.

Global Reach - Game of Risk Among Developing Nations

As a follow up to the US reach reported by the New York Times, I was curious about the global reach of Yahoo, Google, and Microsoft. Note below that AOL is invisible in developing countries.

One Can Only Hope This Is A Trend

Drivers Thumbfrom John Battelle's Searchblog
Via Paul, a chart of US vehicle miles over time

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