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If there is a labor shortage then why are the jobs being created of the kind that are less advantageous to workers? Isn’t the market supposed to “correct” in fa
by 1_2__4 9y ago
If there is a labor shortage then why are the jobs being created of the kind that are less advantageous to workers? Isn’t the market supposed to “correct” in favor of labor in that scenario? Because it looks like the opposite has happened.
- lotsofpulp 9y agoI think it depends on the flow of money. It doesn’t happen overnight, but if money is flowing unevenly and most of the population is not getting enough to maintain their consumption, then their consumption will fall reducing the need for employees. For now, many people are still reaching into the future and pulling money into the present by buying with home loans, student loans, and car loans. But once that is unavailable, and demand starts dropping because they’re not seeing the money come back to them (since it’s easier and easier for it to get funneled to the top), then the market will adjust again. However, you never know when it can stop because governments tend to keep pulling money from the future to pay for things like healthcare and retirement welfare for people who didn't save enough.
- scythe 9y agoMy understanding is that QE caused asset inflation which increased the price of land and therefore increased the price of housing. So wage gains have ended up in the hands of landlords.
- eli_gottlieb 9y ago>Isn’t the market supposed to “correct” in favor of labor in that scenario? The purpose of neoliberalism is to ensure that no matter the actual ratio of supply to demand, the price of labor will never rise. Must never rise. The basis of this entire economy is low wages.