Price, cost declines may provide mild boost to U.S. economy


As declining prices and costs offer a potential boost to the U.S. economy, it's clear that this trend fits in the category of 'a mild tailwind would help, anything more is not welcome.'

As most investors know, the U.S. economy is suffering from a lack of demand, due in large part to the loss of more than 6.5 million jobs since the recession started in December 2007. Also, the long-term trend of globalization has further weakened that demand, as hundreds of thousands of jobs continue to be transferred to lower-cost production and commerce centers around the world.