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Yah which is exactly why this response is not going to work. The issue right now with "full employment" is incentive based -- after covid large numbers of peop
by breatheoften 4y ago
Yah which is exactly why this response is not going to work.
The issue right now with "full employment" is incentive based -- after covid large numbers of people opted out of the jobs available to them because they finally recognized how much they have been being screwed over by the employer classes. The social contract is bad -- people are unhappy with raw deals.
I think the only thing that could actually work right now will require actually addressing the structural social wealth imbalances.
Too much employment --> introduce mandatory hour caps and increase mandatory vacation allowances and decrease retirement ages.
Too much overhead per employee -- get healthcare the hell out of the employment contract ...
It's insane to me that when we saw relative cross class wage growth for the first time in decades -- the immediate conclusion of all the decision makers had been that the labour market is over-exuberant and needs to be tamped down...
- pm90 4y agoIt’s important to understand that the Fed has limited tools at its disposal. Congress does have the power to enact the required structural changes. However, the Fed Chair has not been very vocal about this so it always seems like the Fed is the only agency that can do anything about the situation. Honestly Powell should stop pretending he has any control over the situation and say it explicitly that rate hikes aren’t really having the intended effect. He is a bad Fed chair.