as fallen by around 35 percent (Oil and the Economy, “Will higher prices mean a recession?”, March 13,2000). Even if the experiences with increasing oil prices are taken under consideration, the risk of a recession, at this point, is low. In either case, however, high oil prices fuel the risk of recession by making the economy vulnerable to other negative developments (Oil and the Economy, “Will higher prices mean a recession?”, March 13,2000). If oil prices were lower, the economy could endure other problems more easily. With high oil prices, the economy may not stand up as well to any new unexpected shocks. The current employment situation appears to be another “bright spot” in today’s economy. The unemployment rate rose to 4.1% in February but remains near its lowest level in more than three decades (Bank of America, Economic Research, Economic in Brief, November 1, 1999). Consumer expectations of the economy remain favorable and spending is strong. Wages are rising faster than inflation, allowing families to stretch their incomes further. This “gilded” image of the job market, however, has its own shortcomings as well. Despite the existing prosperity and the tightest labor markets in a generation, more workers are afraid of losing their jobs than at the bottom of the 1991 recession (Market News, Greenspan: Worker Insecurity now more than in last recession by Chris Middleton). It is a "pivotal period," Greenspan went on, that is a direct result of the development of the transistor after World War II. "It brought us the microprocessor, the computer, satellite and the joining of laser and fiber-optic technologies." The average worker can no longer obtain skills in high school that will be a sufficient support for an entire career, he noted. For this reason, technological changes make many workers concerned about job security, and as a result, excessive wage increases do not come int...
