Drudge, Trumpbart and the rest of the conservative media no long post links to the number of people not in the labor force. Moreover the concept of sticky wages and unemployment is that in theory reducing the cost of labor and cutting wages/other compensation or employer payroll costs (e.g. employer-side payroll taxes) will reduce unemployment. But, employees are generally unwilling to take lower nominal pay over time even if they would be better off in real terms. And so labor markets historically throughout capitalism don't clear like other markets and in many cases, reducing labor compensation can even make things worse because workers rely on that money to spend elsewhere - i.e. what Keynes' overarching claim was.like_that;1856306 wrote:I brought this up in the progressive thread. I don't recall many obama supporters bringing up the bolded when he was in office. Now that he is gone, this is an issue?
To think this whole time it was only sticky wages. :RpS_lol:
Interestingly enough, even with the labor supply dropping substantially you still don't have wages rising substantially which should allow for the regular unemployment to continue to drop for the time being.
Soon we'll all be selling LulaRoe to each other on Facebook all day and spending everything we earn on Netflix and Amazon : thumbup: