US, INDIA...

Lower workforce could fasten the Fed's target of labour market tightening and sudden wage build up and would increase nominal wage inflation cost and lower real wages and increase nominal prices and lower real prices, increase nominal interest rate and lower real interest rate and increase nominal exchange rate and lower real exchange rate and increase unemployment and lower employment, lower savings and investment, price and growth and expectations... We have lower employment investment demand supply price and growth expectations... Higher borrowing cost would further increase inflation… Nonetheless, higher nominal exchange could increase exports, but at the cost of domestic demand supply employment investment and growth and expectations…Since past few years oil prices have shown less stubbornness and are still recovering from an all time low of $ 26 per barrel on the back of big pathbreaking innovation in the oil industry due to fracking or the Shale oil and gas, in the US, the biggest guzzler of imported oil, not long back… The Shale revolution has turned the tables overnight with the US’ stature of net oil importer to net exporter… Nonetheless, its cost is higher that extracting oil in oil rich countries, but, more investment at lower prices would reduce average cost and help maximize economies (of scale)... Should dump capital to lower cost and prices and increase market share... would also increase employment... Oil importing countries, too…

Lower actual growth rate than Indian estimates might lower expectations and employment and investment and the potential growth rate, however the economy's potential growth on the labourforce participation every year is 12 million or more, but the economy is adding only 1.2 million jobs since past years, that needs more investment and lower borrowing cost and more jobs and lower unemployment, when desired savings are more than desired investment due to higher real interest rate or higher real effective interest rate relative to others... However, the point is still that that the economy is growing well below the potential and potential supply amid lower employment and tight investment... culminating in lower warranted or projected or expected growth rate... Employment is also directly related with national output, full employment means full domestic investment and production and higher growth and growth expectations… and more investment to lower prices and increase productivity through higher supply… The assumption that the future will have higher prices is against the observation of the developed world where inflation has gone down due to lower borrowing cost and more competitiveness… The GOI Fiscal Deficit target is shifting posts since last few years under higher spending and debt by the State Governments... Government spending on capital formation or infrastructure and construction could create alot more employment, demand, inflation and lower real GDP or GVA... because it is unskilled employment intensive... if it does not increase supply...