Posted on 08/15/2016 11:18:41 AM PDT by Lorianne
The only way to reverse declines in labor participation and stagnation in wages and demand is to make it easier to start enterprises and hire people.
The reason why mainstream economists don't understand these developments is they don't:
1. Consider the systemic impact of energy and EROEI (energy returned on energy invested).
2. Consider the systemic impact of fast-rising private and public debt.
3. Consider the systemic impact of rising inflation resulting from state-cartel capitalism; the only possible output of state-cartel capitalism is a higher cost structure for' the entire economy.
4. Consider that consumption is exhausted because everyone already has everything--the utility of more consumption is increasingly marginal.
5. Understand the perspective of employers and marginalized workers. Most economists are safely inside the well-paid protected castles of academia or government, and so they have no real experience of being an entrepreneur or employer. They have no real grasp of how difficult it is to start a business or operate a business at a profit.
(Excerpt) Read more at charleshughsmith.blogspot.jp ...
Target millennials. Make them out as victims of system that is robbing them of their future.
STOP FLOODING THE LABOR MARKET WITH FRAUDULENTLY DOCUMENTED FOREIGNERS!
STOP FLOODING THE LABOR MARKET WITH FRAUDULENTLY DOCUMENTED FOREIGNERS!
Hey, they only use foreign workers to do the jobs amerians won’t do - like be an animator for Disney. ;-)
Ummm...how about the hundreds of thousands of pages of regulations since 2009. New regulations cost consumer $784 Billion since Obama took office.
Excellent. Bump for later
HR Departments were always self-serving and wildly inefficient.
The pick-one-from-each-category ‘diversity’ nonsense has them absolutely paralyzed - along with Contractor Mania that, despite the IRS’ so-called crackdown - continues apace. 6-month contracts are handed out like candy with 99% of contractors cut loose - at no risk the companies.
This sort of by-the-numbers, short-term thinking forms a vicious circle since productivity from (effectively) temps will always be substandard and company progress/growth will fall behind.
There’s a lot of BS here. Going from top to bottom:
1. Widening wage gap for “Upper casts of technocrats, professsionals, state Nomenklatura”. First, why would anyone be surprised that people in tech or professional jobs have faster rising incomes. That last term, BTW, is a Russian term for a gov’t bureaucrat.
2. People at the top of the income distribution are spending at a faster rate than 20 years ago. Why not? When you can only get 0.1% on savings, you’re under the threat of higher capital gains rates, why not buy now?
3. Gees...this guys is surprised that people with better education and training make more income. Really?
4. Labor force participation rates are falling. First, the Discourage Worker Hypothesis says people drop on of the labor force when they can’t find work. Indeed, this is the only reason unemployment rates are falling. With employment numbers falling, it’s the only explanation. Also, transfer payments—from welfare payments to all kinds of gov’t subsidies—mean people can live without working. A lady in MN called into a talk show bragging that she makes a little over $36,000 a year on all of her subsidies, from welfare, food stamps, housing, etc. She said: I can’t find a job that pays more than that. And this clown’s surprised that people don’t participate?
Finally, his reasons for the factors simply don’t make sense...read it for yourself and see if it does.
21,995,000 to 12,329,000: Government Employees Outnumber Manufacturing Employees 1.8 to 1
diversity’ nonsense has them absolutely paralyzed
Oh yeah very well put! In the past year they have not hired anyone that was not foreigner.. Not one.
In addition to over-supply of labor, you have another phenomena I’ve not seen really referenced or studied - “true” disposable income - the amount one can spend on a discretionary basis. Specifically, disposable income is generally regarded as funding purchases for things like healthcare and energy consumption costs. We have a federal government that, through its specific actions, has increased the costs of healthcare and energy (particularly motor fuels). This doesn’t directly impact gross income, and doesn’t affect disposable income in the classic definition. But from a practical perspective, people are spending more on both, but getting no incremental value in return (paying more for the same or inferior utility value). This reduces the amount of actual disposable income that people can spend on a discretionary basis. When you reduce discretionary spending, you reduce the velocity of money, which leads to further stagnation.
“Me and my fellow professors all have jobs. Things are great.”
The only wages that won’t stagnate are those of government workers.
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