[bd476]

Thank you for posting this, 1rudeboy. I like the way Dr. Higgs has outlined the facts.
Yet economics is not my forte - I think he is saying we’re in very deep trouble, that unemployment is
not going to improve - true?

[1rudeboy]

One way of looking at it (but just one way), is that producers are "eating" the increased price of raw commodities, and not passing it on to the next user. This would serve to keep inflation down.

However, when that producer "eats" the additional cost, that's a machine he didn't buy, or an employee he didn't hire. Essentially, this is what Higgs argues: policy-makers don't, or refuse, to see it.