Fact is, neither bond traders nor workers have had a great year. OPEC has had something to do with this. So has Mr. Greenspan. One final point. The long-run objective of promoting greater labor force supply will best be met by reducing government obstacles to work, not by raising interest rates.
Workers work for real wages, after-tax.
The best medicine for labor and capital is King Dollar and lower marginal tax-rates. Tax something less, you get more of it. Like other factors, the labor supply responds quickly to tax incentives and regulatory relief. Marx is dead and wrong. Laffer is alive and right.