The rate of growth of productivity in the U.S. economy remained relatively low in the 1980s and early 1990s. Real wages fell in many industries during this period. Many economists argued that structural changes in the economy had resulted in a natural rate of unemployment that was over five percent. The late 1990s, however, provided a very different economic situation in which a more rapid rate of productivity growth resulted in higher real wages throughout the economy. Full Debate Technological advances allow society to produce more output from the existing mix of resources.
Society clearly gains from the production of either more output or more highly valued output.
Until the Great Depression, most economists argued that the government should provide a stable economic infrastructure, but should not engage in attempts to stabilize the economy. These models suggested that there was no need for governments to engage in activist fiscal or monetary policies. The experience of the Great Depression, however, caused many economists to re-evaluate these models and policy recommendations. In May 1998, decisions were made on which countries were eligible for participation in the European Monetary Union. Critics of the Act contend that the separation of commercial banking from investment banking is unnecessary and harmful to the competitiveness of the U.S. financial services industry in the global marketplace.