Solid productivity dampens the impact of wage gains. Combined with a slower world economy, we have not seen the anticipated inflationary push. A combination of strong growth, low unemployment and low inflation drove economic expansion. The potential economic speed limit has soared. This affects newspapers, as they experience the cumulative effect of many local economies.
Publishers expect to be rewarded with strong revenue and higher profit.
Low unemployment now causes some recruiters to forego newspaper advertising and seek other ways to attract employees. Similarly, labor and material shortages affect housing starts, thereby weakening real-estate ads. Second, conventional retail is challenged, too. Books, clothing, groceries, home electronics, pharmaceuticals and other products can be purchased online. Primary advertisers fret, and pundits question how many of them will be here in 10 years.