“[F]aster productivity growth keeps a lid on unit costs and prices. Firms hesitate to raise prices for fear that their competitors will be able, with lower costs from new investments, to wrest market share from them.
“Indeed, the increased availability of labor-displacing equipment and software, at declining prices and improving delivery lead times, is arguably at the root of the loss of business pricing power in recent years.
other inflation-suppressing forces have been at work as well.”
Andrew ("Drewk") Kliman Dept. of Social Sciences Pace University Pleasantville, NY 10570 USA phone: (914) 773-3968 fax: (914) 773-3951
Home: 60 W. 76th St. #4E New York, NY 10023 USA
"The practice of philosophy is itself theoretical. It is the critique that measures the individual existence by the essence, the particular reality by the Idea."