“Well, yes, because i know that some business DO. But that wasnt the point to begin with.”
Well, that was certainly MY point. If unemployment is dropping, but GDP is not rising, then businesses must be hiring people who don’t produce much per capita.
And if businesses broadly speaking reward more productive workers with higher wages…….
“Stagflation just means stagnant inflation. Its not a specific event.”
No. Stagflation revers to the 1970’s reality where high inflation coexists with high unemployment and slow GDP growth. Which prior to 1970’s, economists thought was impossible. Destroyed the notion of the Phillips Curve.