The economy has been rising steadily for months, so much so that investors have begun to worry whether it's time for a "correction" -- read: A substantial, if temporary, downturn, or even a recession, which is defined as two consecutive quarters of negative GDP.
They have been watching the Federal Reserve Board closely to see whether the Fed will boost interest rates to slow the growth rate.
Today, they got the news that the Fed will not boost interest interest rates. So is that good news or not?
It could mean that the nation's central bank believes the economy still has some growth potential left, so there's no need to hit the monetary brakes. Or it could mean that the Fed is taking some cues from the president, who has been calling for a growth rate of as much as 4 percent. Currently, GDP has been growing at about 2 percent, and unemployment has been steady at some 4 percent.
However.
The minutes of the most recent Fed meeting, released today, were for a meeting that was held three weeks ago. Meanwhile, Britain's jobless rate jumped to 4.4 percent, while average pay level did not change.
So will the U.S. economy remain strong and growing, or will it stall and fall?
Aye, that is the question.
If the economy grows and unemployment is low, that means jobs are available. But when jobs are not available in other countries -- unemployment rates rise -- that means workers will go to where the jobs are. And if that means moving to other regions within a country or emigrating to another country, that's what people do.
Historically, that's what has driven immigration to America for many decades -- this is where the jobs are.
But the president wants to increase jobs for Americans while keeping out others.
Economics 101 and common sense says things don't work that way. Wages rise to compensate for a labor shortage, which causes higher consumer prices and also attracts more migrants.
You can't build a wall to keep out workers while expecting those already here to accept low pay for high skill jobs.
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