GREENSPAN EXPECTS JOB GROWTH
Federal Reserve Chairman Alan Greenspan yesterday dismissed worries that the U.S. recovery could peter out because so few jobs are being created, asserting the economy is not capable of growing rapidly for long without producing jobs.
“It’s just a matter of time before we begin to see employment start to pick up quite significantly, as it always has in the past,” Mr. Greenspan said. He argued that the stunning 9.2 percent growth rate in productivity, or output per worker, seen in the summer is so extraordinary that it in effect “stole” jobs that otherwise would have been created as a result of booming growth.
In a rare comment on an economic report that shook the markets and raised doubts about the recovery Friday, Mr. Greenspan told bankers in Berlin that the meager December job gain of 1,000 reported by the Labor Department “is not surprising,” given such high productivity. But that rate of productivity growth is many times the average experienced by the U.S. economy in the past, and will not continue, he said.
So, basically, there is no need to create jobs as long as existing workers can hold up doing half the work of a non-existent worker in addition to their own? Makes sense to me.