Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Dialup Llama

There are two jobs figures.

One asks established companies if they are hiring or firing. It is best at finding union losses, or problems with large "dinosaur" companies.

The other does a survey of households. This finds new start ups, small business growth.

The unemployment rate is 4.7 percent. That means that anyone who wants a job, can get one. Anyone with a job, that is not paid at market rates, can get a better one.

What do employers do when they need more work done, and can't hire people? Either you hire illegals (with the security problems associated with that) you invest in capital improvements (that makes your exisiting workers more efficient) or you move what work you can offshore.

Japan doesn't care for illegal aliens, so they have many many robots. Problem: that isn't very flexible. When the market changes, you are stuck paying off your loan on machinery. That accentuates the normal business cycle into a boom-panic cycle.

The US hires many illegal aliens. I don't like that, because I see it as a security vulnerability. A lot of US companies also work with foreign companies in India and China. WalMart in particular buys lots of stuff from China. Apple for years built their computers in Singapore.

Each has difficulties. There is a lot of work that has to be done. The US GDP is very very large. So long at US productivity is high, US living standards will be high. I don't mind it when other democratic nations such as India increase their productivity. I get concerned when China, which is not democratic, increases productivity, but eventually it will be hard for the Chinese gerontology to order a war against their customers or suppliers. The more that China is integrated into the world economy, the more the "communist" theory will become irrelevant.


92 posted on 04/23/2006 4:55:11 PM PDT by Donald Meaker (A Turk is always a Turk, but you don't know WHAT a Christian will do.)
[ Post Reply | Private Reply | To 6 | View Replies ]


To: Donald Meaker
The unemployment rate is 4.7 percent. That means that anyone who wants a job, can get one.

That particular unemployment stat is simply a ratio between job seekers and those who find work. The real stat which is important is the labor participation rate which isn't so rosy.

This article describes the various unemployment measures:
The numbers behind the lies

Economist John Williams says ‘real’ unemployment and inflation numbers -- figured the old-fashioned way -- may be two or three times what the government admits. Here’s why.
103 posted on 04/23/2006 5:04:14 PM PDT by Dialup Llama
[ Post Reply | Private Reply | To 92 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson