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12/18/2017

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Nice treatment of this topic by Stephanie. In her current capacity, I'm sure Stephanie has heard the quote attributed to Harry Truman, " . . give me a one-handed economist". The phrase clearly expressed Truman's frustration with economists and their predisposition to (correctly) say, 'on the one hand...on the other'. There's no question . . . it's complicated.

Again, this was good - and Stephanie listed the "usual suspects" in what's the generally-accepted order, and where Employment is generally acknowledged as the economic driver/engine. Which in-turn spawns Inflation, which will ripple through the economy and increase wages AND prices. And a little inflation is in fact desirable - and way more so that a little deflation.

For the past 20 years, I've worried that most (okay, many) compensation professionals have what amounts to a substandard understanding of micro- and macroeconomics (and I'll include myself in that stereotype statement). So, if you think you're going to glean a mastery level of economic theory that allows you to predict a stock market shift or the future price of pork bellies - you can forget that.

If you want be smarter and more knowledgeable about economic conditions for the near-term future, you can probably put your faith in the law of large numbers and some semi-reliable information sources draw some pretty solid inferences and generalizations from existing information that will benefit you and your organization.

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