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Saturday, July 12, 2014

Summers: Future America has not enough jobs

Democrat economist Larry Summers writes in the WSJ:
The great economic problem for millennia has been scarcity. People want much more than can be produced. The challenge has been to produce as much as possible and to ensure that everybody gets their fair share.

In important respects, the problem has changed. There are many more Americans who are obese than who are undernourished, for example. But that is only a harbinger of things to come. The economic challenge of the future will not be producing enough. It will be providing enough good jobs. ...

If current trends continue, it could well be that a generation from now a quarter of middle-aged men will be out of work at any given moment. In such a world, more than half of men would have an out-of-work spell of more than a year at some point during their prime years. We do not yet fully know what the capacity to come back to work after such an experience will be, but the experience of men out of work for a long time because of the Great Recession is surely troubling.

So the challenge for economic policy will increasingly be generating enough work for all who need work for income, purchasing power and dignity.
He has been an adviser to Pres. Clinton and Obama, and of course he is hoping some more Democrat government programs will help. Thomas Bundros comments:
As the number of jobs are forecasted to decrease or at least grow at a decreasing rate, our current governmental programs are all wrong.

1. The current federal administration is dis-incenting domestic job creation by increasing federal regulation, mandating health care cost increases to employers, and maintaining high corporate tax rates.

2. Additionally, our current entitlement programs are sending signals for the lowest socio-economic classes to increase the number of children while the middle and upper middle classes are decreasing their family sizes due to the high expenses of child rearing and education.

Extrapolate all of these forecasts and trends, the USA will soon have a society of large, undereducated masses with a very small group at the top of the socio-economic pyramid. A structure that is not sustainable vis-à-vis Czarist Russia.
And we are importing millions of legal and illegal immigrants while we have high unemployment rates.

The argument that we need massive immigration to fuel future economic growth is false.

Europe is taking Third World immigrants to try to boost GDP, and it just found another method:
As of September, all European Union countries will be required to take fuller accounting of trade in sex, drugs and other underground businesses as part of an overhaul of economic measurements by Eurostat, the European statistics agency.

The point of counting everything, including the wages of sin, is to get a more accurate reading of each country’s gross domestic product. Because G.D.P. is such an important number — one that can sway national policies and make or break politicians — the European Union wants numbers “better reflecting the economic environment,” Vincent Bourgeais, a Eurostat spokesman, said.
So now those countries will have an incentive to encourage their black markets in order to claim economic growth.

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