Posted on 04/19/2018 5:52:37 AM PDT by davikkm
Neel Kashkari has become the Federal Reserve’s foremost skeptic of the notion that the U.S. is experiencing a severe labor shortage. Kashkari, who is the president of the Minneapolis Fed, points to the lack of significant upward pressure on wages as evidence debunking the claims that the U.S. lacks workers. The logic is pretty simple: if the supply of labor is so limited relative to demand, the price of labor should be swiftly rising.
The fact that the price of labor is not rising much suggests that perhaps labor is not in as short supply as some employers and special interest lobbying groups claim. Maybe these claims of a labor shortage are just covers for those who want U.S. labor costs to fall, which would raise profits in the short term.
Another theory is that labor prices have become stuck at low levels because employers, after so many years of high unemployment and minimal wage pressure, have become reluctant to raise wages. The tool of offering higher wages to attract new workers has fallen out of the toolkit of many American businesses and no one noticed because it wasn’t needed for so long. But now that there are far fewer unemployed people desperately hoping for a job, employers do not know where to turn to find new employees. They’ve forgotten how to poach workers from competitors with higher wages.
On Tuesday, Kashkari returned to this theme in a series of tweets that lay to waste a Wall Street Journal article pointing to “historic, severe shortages” of labor.
(Excerpt) Read more at breitbart.com ...
Well said! I have seen this first hand. One thing that really tweaks me is that Medicaid no longer looks at assets to qualify, only income.
Exactly and their fighting like hell to keep it.
The lack of good jobs is also affecting family formation. Alsoby design.
Rep. Tom Cotton sponsored a Bill to cut legal immigration by half and to end the scam Family Reunion quotas. It’s about time immigration was halted completely for at least a decade until we get our workers straightened out. Leftists know that the easier government makes it to survive without working, the work ethic goes down the toilet.
And the Commerce Dept.
They fought like hell to get moms out of the home.
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