Skip to comments.The Wages of Unemployment
Posted on 01/16/2013 6:47:05 PM PST by OddLane
From the mid-17th century to the late 20th century, the American economy grew roughly 3.5% a year. That growth rate has since declined significantly. When the final figures are in for 2012, the annual rate of real output growth for the first dozen years of this century is likely to be about 1.81%.
What accounts for the slowdown? An important part of the answer is simple: Americans aren't working as much today. And this trend reflects more than the recession and sluggish economy of the past few years.
The national income accounts suggest that about 70% of U.S. output is attributable to the labor of human beings. Yet there has been a decline in the proportion of working-age Americans who are employed.
In recent decades there was a steady rise in the employment-to-population ratio: For every 100 working-age Americans, there were eight more workers in 2000 than in 1960. The increase entirely reflects higher female participation in the labor force. Yet in the years since 2000, more than two-thirds of that increase in working-age population employed was erased.
(Excerpt) Read more at aei.org ...
Very interesting. Are employment levels down mainly because of a loss of jobs in general, or are we working less simply because more and more people in the Baby Boomer generation are reaching retirement age?
“True enough, the economy isn’t growing very much. But if you pay people to stay at home, many will do so rather than seek employment or accept jobs where the pay doesn’t meet their expectations.”
OK, the above makes sense to me.
“If more people have less incentive to stay out of the work force, they might seek jobs and help spur economic growth.”
But this doesn’t. I cannot see how anyone can create jobs unless there is a Perfect Storm of opportunity as a very FEW of our states are showing these days. And once THOSE jobs are at capacity, where will the rest of them come from? And who can just up and move to where the jobs ARE when they have nothing going for them in the first place?
It’s really frustrating, disheartening and all by design.
How can a country filled with smart people be so stupid about this stuff? I mean, we have literally KILLED ourselves at best and turned ourselves into a bunch of Slaves to Mother Government at worst!
“Yet in the years since 2000, more than two-thirds of that increase in working-age population employed was erased.”
Yet in the years since Ronald Reagan, Federalites skyrocket, regulation skyrockets, Asia manufacturing skyrockets, Glass-Steagal repeal scams skyrocket.
Three reasons for the shift
And another reason: over-regulation and other ills of nanny-state socialism.
Matter of fact, that is one of the drivers of globalization.
Now that I think of it, though, nanny-state socialism seems to be morphing into werewolf socialism, and I don’t know what that will bring.
Jobseekers spurring economic growth, no, that doesn’t make sense. You don’t build capital by adding labor. But there is a connection between incentivizing sitting on the couch and unemployment, obviously. And it isn’t as though there needs be a “perfect storm” to create jobs at all. The most important thing is private capital, which would grow the economy on its own were not Fedzilla and other gubmints eating our savings.
Great article! How the compassionate progressives have almost brought America to it's knees.