As mentioned, overseas economies as a whole are gradually heading toward a pick-up, although the pace is quite modest. Therefore, in the United States and Europe a negative output gap remains – excess labor force and excess facilities – and unemployment rates remain elevated (Chart 6).
Wealth has always been created, virtually by definition, when individuals use their growing knowledge to interact with an expanding capital stock to produce goods and services of value. Assisted by the whole array of market prices, entrepreneurs seek to identify the types of products and services that individuals will value.