Instead, it has helped keep a lid on inflation, enabling the Federal Reserve Board to avoid restrictive behavior. Economists tend to see potential growth defined by technological limits. Labor, employment growth, unemployment, productivity, inflation, interest, money supply, public and private debt, and anticipated tax changes drive our models. All are bound by the danger of an active Federal Reserve or the debilitating impact of government policies. These constraints have changed.
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.