Discussion in 'Economy' started by DavidS, Apr 3, 2009.
663,000 jobs lost - 8.5% Unemployment
Oh, so they're saying unemployment is 8.5%?
Okay, then the real rate of unemployment is probably around 17% or so.
Yeah, judging from what I'm seeing, I'd say that's about right...17%.
FYI, this appears to me to be worse than it was in the early 80s.
Fear not Obama swears he will create how many new Jobs?
With capitalist zealots often unable to distinguish between frictional and involuntary unemployment, and believing that minimum wage increases spur unemployment, don't expect them to have any productive solutions.
While the unemployment rate is getting higher, an even bigger problem is underemployment. There are many who are working but who have taken pay cuts as they have had to take on lower paying jobs or are only working part-time instead of full-time.
Actually, he said he would create or SAVE jobs. And since he's increasing the number of Federal Jobs (paid for by working taxpayers, of course), the number of jobs lost will most likely appear to be zero so he will have kept his campaign promise.
A jobless recovery... Where have I heard that before?
Underemployment will also be exacerbated and increased by schemes to cut unemployment benefits. Considering the nature of job search frictions, an extensive and thorough search lends itself to skill set matches with the proper employer to a far greater degree than a hasty search would, given the nature of imperfect knowledge about labor markets. Elimination of unemployment benefits would thus increase underemployment as workers lacked a sufficient amount of time to seek out skill set matches and thus obtain greater knowledge about the labor market in question and would take the first position with a sufficient reservation wage, thus promoting underemployment in such a position, and thus inefficiency.
I know know three people who in the last couple months have taken pay cuts to keep their companies going and to prevent layoffs of their fellow workers.
Other people I know have seen their hours cut back.
Underemployment is, and has been a problem for quite some time.
If you cannot find enough work? You are underemplyed.
If you are forced to do a job outside of you area of expertise?
You are underemployed, too.
Do we even attempt to keep statistics on underemployment?
I don't think we do because I think defining the underemployed is beyond our ability to define, or perhaps because our political will is to NOT WANT TO KNOW.
Underemployment indicates a sick economy just as unemployment does.
And lord knows our government has been lying to us about our economy's health pretty much our entire lives.
I know of some who would argue that if you are working a forty hour week you are under employed...
Minimum wage increases do cause unemployment among other things. In fact they can't help it.
there are only four options Mr. businessman can do when his cost sudeenly escalate for reasons beyond his control. He can increase his prices, he can go out of business or lay some people off and hope to meet his sales orders with a smaller leaner staff, he can reduce his investments (which by the way will cost jobs somewhere down the line and depress the wages of those that are still working, labor being a commodity of sorts that is affected by the law of supply and demand like everything else, or he can take life style hit which penalizes a lot of people other than himself as well. Dunne was right no man is an Island, not in a capitalist economic system anyway.
This isn't really based on an empirical analysis of the minimum wage's effect s on labor markets; it's somewhat dubious speculation derived from a somewhat unrealistic account. To produce the former, we'd need to examine research such as Dickens, Machin and Manning's The Effects of Minimum Wages on Employment: Theory and Evidence from Britain
When we consider the necessary role of "equilibrium unemployment as a worker discipline device," as detailed by Stiglitz and Shapiro, we can have a greater understanding of the necessary role of unemployment in a capitalist economy.
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