THE PHILLIPS CURVE IS DEAD!!!!
BEN “I NEED MORE COWBELL” BERNANKE IS A FAILURE!!!
In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, lower unemployment in an economy is correlated with a higher rate of inflation.
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In the 1970s, many countries experienced high levels of both inflation and unemployment also known as stagflation. Theories based on the Phillips curve suggested that this could not happen, and the curve came under a concerted attack from a group of economists headed by Milton Friedman. Friedman argued that the Phillips curve relationship was only a short-run phenomenon.
http://en.wikipedia.org/wiki/Phillips_curve
i’d imagine the massive entitlement programs offset the loss of income felt by the unemployed moreso today then any other time in our nations history.
this would probably effect the spending habits as unemployment remains high (> 17%)