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Patrick
2012 May 2, 3:23am
Not only does unemployment fall if people stop looking, but wages actually rise if the people who are unemployed are at the low end.
Just lay off all the lowest-paid workers and voila, the average pay goes up without anyone getting a raise! It's like magic.
FortWayne
2012 May 2, 3:36am
Not only does unemployment fall if people stop looking, but wages actually rise if the people who are unemployed are at the low end.
Just lay off all the lowest-paid workers and voila, the average pay goes up without anyone getting a raise! It's like magic.
Now you sound like a true economist Patrick. :)
rooemoore
2012 May 2, 3:38am
It is called the "jobless recovery" for a reason.
The reason is that fewer workers are more productive via technology. Corporations have figured out that profits increase when they can replace 3 workers with 1 and a new piece of software.
Robots taking jobs started years ago, but has been gaining a lot of steam lately. And slowly this trend is moving up the food chain until Hal (or will it be Watson?) tells Mark Zuckerberg to turn the lights off on his way out.
But that day is far away and you guys are kidding yourselves if you think prices in the BA fortresses are going anywhere but up over the next 15 - 20 years.
I just love this quote in the article. I think it is there, just to see if people are really comprehending the information or just skimming the words. So screwed up it is laughable. Man, I got to get working on another passport soon.
"The unemployment rate is not expected to fall below its current 8.2%, unless more workers leave the labor force."
http://money.cnn.com/2012/05/02/markets/stocks/index.htm