Thanks for the Phillips Curve - I never knew its name. The only
issue with it, is it depends on a source of information that's
becoming increasingly unreliable; that of employment.
For example, I run a small business. Now, thankfully, I do
things legit. All paperwork filed and stuff. So, I can be
counted properly.
yet, consider - the hierarchy of big-->small is built into the
formula.
Businesses create money through borrowing/lending for
goods/services and effectively create money ex nihlo. They also
make jobs. Jobs are employment. Taxes are collected by those
businesses who create the money and the employment and I'm not
going to go into bonds here.
Yet, not all people make money through this model. In fact a
growing number of people are very small businesses, or
individuals working under the table, or utilizing 1099s which
they may or may not file.
More and more untrackables.
Not everybody gets a job that creates a W2.
I'm sure they compensate for it, and perhaps on a GRAND
overview, formulas like this are helpful.
But I believe they will be less and less effective because the
data is less and less comprehensive..
Have you noticed since 2008 I think that wherever you go,
companies are asking for your annual income?
