I could have easily been a statistic. Growing up in Brooklyn, N.Y., it was easy – a little too easy – to get into trouble. Surrounded by poor schools, lack of resources, high unemployment rates, poverty, gangs and more, I watched as many of my peers fell victim to a vicious cycle of diminished opportunities and imprisonment.
The supply-side effect of a restrictive monetary policy is likely to be perverse, in that high interest rates enter into costs and thus exert inflationary pressure.
Now, wages in the automobile industry are made up of two components, what we call base rates and the cost of living factor which is fed in by the operation of the escalator.