US Economy is hot.

[Almighty Colin]

Originally posted by RawAlex@May 28 2004, 11:40 AM
Colin, just one of the local stations, during the "business news" segment...

Their concern is how the growth comes BEFORE the inflation, as there is always resistance to increased prices (such as long term contracts, fixed rate pricing, etc, where the manufacture / supplier side eats it on their margin until the contract is done). Some companies (such as Fedex) avoid this by using the option of applying a "fuel surcharge" to shipments. they don't raise their contract rates, but they do end up taking in money to offset those expenses.

If the GDP has grown this fast, it will be interesting to see if company bottom lines move as quickly... or to find out if these companies are just getting squeezed.

Alex

Alex,

You are now talking about the future instead of the past which seems to be a turn-around from your original post. You say "if this happens ..." and if/when inflation increases in the future. That's different than the discussion of what has already happened.

Overall, comparing to the past 30 years or so, has the last year been a good year or a bad one for the US economy? How would you - without cooking the numbers to the negative in advance - fairly evaluate that?



Last edited by Colin at May 28 2004, 12:29 PM