Economic Policy | May 8, 2001
Published Letter to Los Angeles Times
A year ago, employees were receiving an
increasing share of business income, which worried many
employers. The Federal Reserve Board started raising interest
rates in large measure to combat this "wage inflation".
However, the effect has been not only to
increase unemployment but also to bring our economy to the brink
of recession. This is not surprising, given that working
families create and consume most of the products and services in
our economy and, thus, ultimately generate most of the profits
for businesses and taxes for government.
The lesson of this last year, if we care to
learn it, is that employees should be considered more as assets
than as liabilities.
Archive of PROSPERITY: Economic Policy
| Editor |
| Legal | Links