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opportunity to testify today on the crucial issue of American earnings and living standards Adjusted for inflation the US economy has more than doubled in real terms since 1975 How much of that growth has gone to...economic growth for the poor and the middle class because they use measures of prices that mis measure inflation They leave out important components of compensation such as fringe benefits which have become increasingly...of years in the early 2000s As shown in Figure 1 84 earned more than their parents corrected for inflation But 93 of the children in the poorest households the bottom 20 surpassed their parents Only 70 of...

and allocation controls as requested by the President and in connection with the general study of inflation and deflation and the possible avoidance of depressions the committee voted to ask a representative...increase in February in our prices for such semifinished steel 5 United States Steel is a victim of inflation and not the cause of it Steel prices as a whole have lagged far behind the prices of other com modities...disturbing situation revealed by this recent survey was that of semifinished steel We found that in the month of January 1948 Carnegie Illinois lost approximately a million dollars on its sales of semifinished...

are thinking more long term to a day when we are not facing shutdowns and debt ceilings every other month So Dr Hassett with that I will invite your testimony Welcome 3 STATEMENT OF DR KEVIN A HASSETT JOHN...closer to 2 still growth but meaningfully lower If the shutdown continues through the end of the month even with an increase in the debt limit let s say to November 22nd I think that would result in a...two or a week or two that may not be an issue but now if it drags on into the second half of the month then peo ple can t open restaurants they can t expand their operations These are things that are going...

Conditions I want to make a couple of overall comments about the economic recovery before diving into this month s employment numbers In the second half of 2011 economic momentum picked up The labor market continued...strength The ISM Manufacturing Index reading 54 1 percent in January marked the thirtieth consecutive month of expansion in the manufacturing sector And the unemployment rate has been moving in the right direction...twenty third straight month During January the economy gained 257 000 private sector jobs Due to the loss of government jobs overall the economy added 243 000 jobs during the month The manufacturing sector...

Cummings Mr Zandi health care inflation is a significant driver of Medicare s escalating costs What do you think should be done administratively to control that inflation I heard what you said about Medicare...Medicare It seems that no matter what you do you have still got this inflation going on and it is a major factor I would like to have your thoughts on that Dr Zandi That is a really big question Let me...me say a few things or a couple of things One is that health care inflation actually in the last couple of years has slowed quite sharply It has been about 31 2 percent per annum over the past two years...

currently at a stunning 2 64 trillion These excess reserves represent the fuel for significant price inflation 2 We truly live in challenging economic times The United States suffers from a massive Growth Gap...Street and middle class families behind Since the Recession ended the current return adjusted for inflation on the S P 500 is 98 percent Real disposable income per person has risen by a meager 3 6 per cent...the Fed turned to an increasingly rules based monetary policy The results were outstanding low inflation and two long and strong expansions interrupted only by a brief shallow recession Since the Great...

depth studies of inflation and monetary policy in both the United States and in high inflation countries with a specific focus on how best to reduce inflation and the economic cost of inflation Dr Ball is currently...Reserve to stop holding interest rates fixed and to permit monetary policy to do much more to prevent inflation His views eventually prevailed That should remind the Members of their responsibility Today I will...is the chart and it shows the enormous increase re cently in the rate of increase in M2 growth Inflation as a result has begun to rise Prices are rising and the U S dollar continues to sink The most useful...

Valley of Death in funding I am proud to report that QED achieved a funding milestone on its own last month when we received a two year 1 million grant from the U S Economic Development Administration This...Valley of Death in funding I m proud to report that QED achieved a funding milestone of its own last month when it received a two year 1 million grant from the U S Economic Development Administration This...

choice is potential GDP Potential GDP is a measure of what GDP would be at full employment without inflation It is a well understood and a widely used economic concept For example Stanford University economist...should examine the record care fully Between 1990 and 2000 total discretionary spending measured in inflation adjusted dollars fell by almost 6 percent or an even more dramatic 27 percent drop as a percentage...has tended to rise in our measured inflation much faster than other goods and services I for one think that we have a bit of confusion in this because whereas as inflation is usually measured as the increase...

years than the Republican plan seven years assumed there would be higher economic growth and lower inflation in the years to come when compared with the Republican economic assumptions and perhaps most outrageously...approved by all Democrats and Republicans on the Committee the Phillips curve tradeoff between inflation and unemployment was rejected and a new model of growth economics that would guide the policies...United States mishandled monetary policy has caused er ratic economic cycles bouts of double digit inflation a crisis in the savings and loan industry booms and busts in land values volatile interest rates...