However, labor's position has been much weakened as a result of increased competition from foreign products. In 1974, the Bureau of Labor statistics reported 424 work stoppages of 1000 or more workers. In 1985, the number of stoppages fell to a low of 54, and in 1986, there were only 69. Many unions have been forced into wage freezes and concessions. Outsourcing is an important way of alleviating restraints on domestic productivity and of keeping resale prices low.
Consumers are highly leveraged.
The down-side of a long wave Most world economies are past the peak of a long wave. This means that deflation will be more of a problem than inflation. However, each rise peaks at a rate below the prior peak. The U.S. experience such a rise in inflation and interest rates from 1986 to 1990. Starting with the 1990-1991 recession, both rates trended down again.