We are moving into that phase where we expect that wage growth will catch up and take productivity over.

The only way to eliminate the deficit in the long run is through growth.

If you look at the housing market and say, are housing prices going up where job growth is high, where wage growth is high, where demographic movement brings people into the housing market? All of those things seem to be true.

We would see lower levels of investment, lower economic growth, and as a result, lower wage gains.

You will see more wage growth. The productivity numbers have been so good and the margins have been so good we can easily afford more wages.

We've reached the point where employers need to start hiring again, but productivity growth will stay strong, so they can meet some of their increased demand with productivity improvements. That means hiring will be slow and the unemployment rate will stay at about 6 percent for another year and a half or so.