The new economy what was so new about it
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The New Economy – what was so new about it? PowerPoint PPT Presentation


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The New Economy – what was so new about it?. Check out the “port” variables in the next slide. According to our speed limits, we were speeding……unless the speed limit has changed??? Maybe the port had moved during this tie!.

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The New Economy – what was so new about it?

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The new economy what was so new about it

The New Economy – what was so new about it?


Check out the port variables in the next slide

Check out the “port” variables in the next slide

  • According to our speed limits, we were speeding……unless the speed limit has changed??? Maybe the port had moved during this tie!


Recall the implications of a surge in productivity growth what are some priors

Recall the implications of a surge in productivity growth: What are some priors???

  • What about Real wages??

  • What about profits and thus the value of the stock market?

  • What about labor market conditions?

  • What about economic growth?

  • What about inflation?


First pic the percent change in nominal wages

First pic – the percent change in nominal wages.


The new economy what was so new about it

%


The new economy what was so new about it

So real wages were rising, since the percent change in nominal wages exceeded the percent change in prices


What are the implications on the amount of people employed

What are the implications on the amount of people employed?


So more people are working and they are making a higher real wage since they are more productive

So more people are working and they are making a higher real wage since they are more productive


The new economy what was so new about it

Productivity Growth and the budget implications: What is happening to personal income tax, corporate income tax and capital gains tax revenue ? Why? Government outlays???Why?


What about profits the stock market two pics

What about profits? The stock market? Two pics


The new economy what was so new about it

  • The Dow since 1995


The nasdaq since 1995

The Nasdaq since 1995


Check out the gains in wealth in the stock market and real estate those were the days

Check out the gains in wealth in the stock market and real estate…. Those were the Days!


The new economy what was so new about it

So this was the goldilocks economy – people were working, making higher real wages, making gains in wealth in the stock market, had job security and were very confident in things (the future was so bright you had to wear shades!)


Check out this pic remember consumption accounts for 70 of our economy the economic pie

Check out this pic – remember, consumption accounts for 70% of our economy (the economic pie)


Now check out investment

Now Check out investment


And finally the wealth to income ratio and the personal savings rate

And finally – the wealth to income ratio and the personal savings rate


End of new economy

End of New Economy


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