dana kelsey goes in neil dutta's direction. es her price target on williams-sonoma, which is speaks to bennie highs in the headlines and the gloom, there are some good things happening, even a smaller companies. neil: i think that is right. i am looking at the macroeconomy. i see real disposable income growing above 3%. consumer spending growing above 3%. that is healthy. moreover, we see a pickup in new home sales, people are buying homes, cars. i think it makes sense that people are buying housing-related goods. the risk in the economy has been on the investment side. , thatthe flattening out drag is unlikely to repeat itself in the second half of the year, so i think the quickly, between now and the end of the year, the risks are probably to the upside. brendan: related to that question of business investment is productivity. when will we see that number improve? neil: that is really the elephant in the room because productivity growth has been weak. it is something we haven't talking about for a while, and it is a function o

brendan: we just got an urgent e-mail from your good friend neil dutta at renaissance macro -- when walmarte rest of the country does well. tom: i like that. carl: there are two issues here. one, as the economy improves, you see a lot of working and middle-class household may be moving a little further up the spectrum to target or other mid-level retailers. that does pull some of walmart's business. however, you have the improvement in the lower end of the spectrum, the dollar store crowd and whatnot. they are seeing an increase in the minimum wage, and eventually better wage pressures. tom: did you write on twitter about the seattle migration on minimum wage where jobs are moving out in the first six months out of seattle proper into seattle suburbs? do you buy the idea that the jobs will migrate? carl: i think there will be some migration, but it is very expensive to pick up your business and move elsewhere. the employers can maybe shift production around. vonnie: free cash flow, tom. month,llion for the six return on investment down to 16.2%. tom: i just look at const versus nominal gdp.

you neil dutta, mentioned, pushing against this.a decrease in chinese prices, but they have to feed through core inflation here in the u.s. our next answer -- yes, if it introduces economic reform to encourage -- is there a liberalization in china to bring money in? jeffrey: funny we have had this whole conversation and no one has made the connection between what just happened in their equity market and what is going on -- tom: yeah! jeffrey: it is a bit of careful what you wish for purity want financial liberalization, you want market-determine prices might yet when it starts to do things that markets do, perhaps you have a little less comfort with that. there is a reasonable degree of skepticism here around the market reform movements and how realistic china is going to be. brendan: this is the old saint augustine quotes, lord give me market transparency, but not yet. julie: let's end with our last one, it is likely to set up a another round of devaluations globally and delay the fed. brendan: call from somebody. tom: let me get t