The Elephant in the Room

Ah. There you go. I thought you would change your story. NFIB, not the National Federation of Small Business. A totally different organization. So, you assume I am a moron because I used the name you provided me?? And now you change the name of the organization??? Right.
So who is the NFIB?

The same group that exposed the previously little-known American Legislative Exchange Council (ALEC) as a dominant force advancing corporate interests at the state level has now turned its sights on exposing the National Federation of Independent Business (NFIB).

NFIB is hardly operating in near-secrecy, like ALEC was. The organization, which describes itself as "the voice of small business," was the lead plaintiff in the ultimately unsuccessful lawsuit against the Affordable Care Act, taking it to the Supreme Court.

The left-leaning Center for Media and Democracy has posted on NFIBexposed.org, its new website, a study that reveals how consistently the NFIB lobbies on issues that favor large corporate interests rather than small-business interests; its thoroughly partisan agenda; and the millions it receives in secret contributions from groups associated with Karl Rove and the Koch Brothers.

The NFIBexposed.org website, however, chronicles how 98 percent of NFIB's campaign contributions so far in the 2012 election cycle have gone to Republicans, and how 100 percent of its advertising budget supported either Republicans or opposed Democrats.
NFIB Exposed: 'Voice Of Small Business' Is A Front, Group Charges

Wikipedia says: The National Federation of Independent Business (NFIB) is a conservative lobbying organization

The expenditures of NFIB were as follows:
Independent Expenditures: $3,395,315
For Democrats: $3,018
Against Democrats: $1,171,075
For Republicans: $2,405,841
Against Republicans: $0
National Fedn of Independent Business: Summary | OpenSecrets

Great. All experts in research should use completely partisan sources for their information. But, of course, another real problem is that the survey does not list regulations as the primary concern for small business. their survey is a lot more subjective in it's issues.

Who they have donated money to is really irrelevant to me or to the discussion at hand. Explain why they are wrong to suggest that Government Regulation is not a concern among it's members. Any other response will simply be ignored. I am not entertaining your fallacies.

Ad hominem - Wikipedia, the free encyclopedia

And, where is the related study showing regulations cause economic downturns??? You know, the one you do not feel needs a link. Here is a news flash, flash. You really do need to provide a link. Though I am sure you will not, because you can not.
thought so. does not exist.

No where was it stated that Government Regulation causes economic downturns.

9781604991390_500X500.jpg
 
Last edited:
So, I said:
Great. All experts in research should use completely partisan sources for their information. But, of course, another real problem is that the survey does not list regulations as the primary concern for small business. their survey is a lot more subjective in it's issues.
To which tania responds:
Who they have donated money to is really irrelevant to me or to the discussion at hand. Explain why they are wrong to suggest that Government Regulation is not a concern among it's members. Any other response will simply be ignored. I am not entertaining your fallacies.

Really, Tania. What tough talk. Here is the thing, me dear. It is not that your organization, which you named after using a non existent organization on your previous posts, makes donations. It is a well documented right wing site that is for any research purposes, only of value to those looking for totally partial data. No professional research professional would use such a source. But then, that would be PROFESSIONAL researchers. Which, obviously, leaves you out.
And, me dear, I did not say your new organization did not mention regulations as an issue. You may remember, you said they were the NUMBER ONE issue. They were not. Even for this nonsensical source.
So here is the thing, amazon. No professional researcher would use moveon.org as a source. If they did, they would be laughed out of the business. But you use a similar, equally prejudiced, source, and see no problem. So, fine. No problem. Your research, however, is just shit. But that is just my opinion. Of move on, and your source. I am sure you will find many cons that love the source.

Then tania says:
No where was it stated that Government Regulation causes economic downturns.
Yup. OK. My mistake. (See, tania. that is how you admit a mistake) I was thinking of your graph from a prior post relative to this discussion. Where you were claiming findings by the non existent source you were trying to use. Same post. So, you were correlating manufacturing downturns to regulations. In your very own graph. Here it is:

$tania.jpg

So, if a research professional produces their own graph, they would provide access to the data. You did not. Just wondered where you got the data, because it seems to be entirely inaccurate. To me. Sorry you are so sensitive. But I, who gladly admits that my thing is not research, would have no problem providing a source. You seem to. Any professional who has not provided such information would. You do not. Why is that???
 
Should we believe AT, or those at the top of their field? Hmm, tough question.

http://krugman.blogs.nytimes.com/2012/04/28/where-the-productivity-went/

How about you just come up with a better argument? Unit Labour Cost is the ratio at which productivity increases relative to employee compensation. The changes can be determined by subtracting the change in productivity to the change in employee compensation, but essentially when Unit Labour Cost increases, wages increase. When Unit Labour Cost decreases, productivity increases. This can either be accompanied by falling or stagnant wages/productivity. That's just basic stuff. Unit Labour Cost has increased 5% total for the Business Sector. The economy as an aggregate has increased productivity by 17.1% since 2009 Y/Y, and hourly compensation has increased Y/Y 17.4% trailing. Right now, wages are outpacing productivity. Just so you are clear, I am using BLS own numbers from their own labour cost statistics.

Labor Productivity and Costs Home Page (LPC)

fredgraph.png

Virtually anyone can create a graph which shows productivity has outpaced wages over a certain period of time. Especially if they use an index base year going far back enough. It doesn't mean that productivity has skyrocketed. It means that you've had plenty of inflation from 1973/1980 up until now. And the entire purpose of Unit Labour Cost is to determine future inflation. If productivity is growing, businesses can pay their workers more out of the increased output rather than by raising prices. However, if productivity is increase and wages are not following, that is an indicator of inflation. The monetary doves are never short on an opportunity to show how very low inflation is. Also economists like Paul Krugman seem to enjoy finding different ways to show how inflation is low. Either productivity is really outpacing wages due to inflation, or real wages are really on the rise. He can't have it both ways. And by the way, I use all the same data as Krugman.

And for what it's worth, my MS is in Qualitative Finance. Credentials are not what is being debated here. Only the evidence is. If you want to make a convincing argument, explain why I am wrong. Running behind logical fallacies won't convince me you are knowledgeable, nor will it make up for your economically shortcomings.
 
Yup. OK. My mistake. (See, tania. that is how you admit a mistake) I was thinking of your graph from a prior post relative to this discussion. Where you were claiming findings by the non existent source you were trying to use. Same post. So, you were correlating manufacturing downturns to regulations. In your very own graph. Here it is:

View attachment 27390

So, if a research professional produces their own graph, they would provide access to the data. You did not. Just wondered where you got the data, because it seems to be entirely inaccurate. To me. Sorry you are so sensitive. But I, who gladly admits that my thing is not research, would have no problem providing a source. You seem to. Any professional who has not provided such information would. You do not. Why is that???

I really don't know what position you believe you are in to determine which data seems accurate and what doesn't if you yourself admits that research isn't your strong suit. My only responsibly when creating graphs are to cite wherever I collected the data from. Sometimes I forget to do this from time to time. It only means that I was rushing to produce the graphs. Regardless anyone can go to primary websites and see what the data says for themselves.

http://research.stlouisfed.org/fred2/data/MANEMP.txt

https://www.federalregister.gov/uploads/2013/05/FR-Pages-published.pdf

Terminologies matter when you are trying to discuss economies. Learning these terminologies helps gives a person a better understanding of data piece of data, and what it represents. No one can show me any piece of data right off the back. I'll be able to know if the data represents what it truly represents.

The problem is not my data. The problem are those who fail to understand the data.
 
Yup. OK. My mistake. (See, tania. that is how you admit a mistake) I was thinking of your graph from a prior post relative to this discussion. Where you were claiming findings by the non existent source you were trying to use. Same post. So, you were correlating manufacturing downturns to regulations. In your very own graph. Here it is:

View attachment 27390

So, if a research professional produces their own graph, they would provide access to the data. You did not. Just wondered where you got the data, because it seems to be entirely inaccurate. To me. Sorry you are so sensitive. But I, who gladly admits that my thing is not research, would have no problem providing a source. You seem to. Any professional who has not provided such information would. You do not. Why is that???

I really don't know what position you believe you are in to determine which data seems accurate and what doesn't if you yourself admits that research isn't your strong suit. My only responsibly when creating graphs are to cite wherever I collected the data from. Sometimes I forget to do this from time to time. It only means that I was rushing to produce the graphs. Regardless anyone can go to primary websites and see what the data says for themselves.

http://research.stlouisfed.org/fred2/data/MANEMP.txt

https://www.federalregister.gov/uploads/2013/05/FR-Pages-published.pdf

Terminologies matter when you are trying to discuss economies. Learning these terminologies helps gives a person a better understanding of data piece of data, and what it represents. No one can show me any piece of data right off the back. I'll be able to know if the data represents what it truly represents.

The problem is not my data. The problem are those who fail to understand the data.
So, you stand by your chart. Good for you. I am not at all surprised.
Here is the thing, amazon. You can create charts. I can create charts. Or a whole number of others can create charts. The difference, me dear, is that simply because you say your data is valid is not convincing. If you come up with charts that show different outcomes than pretty much every im\partial source, then I do not have any reason to believe your outcomes. You see, when you post a result based on a fictitious organization, you really have lost all of your credibility. Shen you then change the name of your source to one with no credibility, one known as a hack organization with no credibility itself, you loose credibility. And when you post a result which is different than even that organization came up with, you loose credibility. Then you want to tell me that your data is valid, and that I should go check it out, you totally lack credibility. You post untruths, and get caught doing so, then have the unmitigated gaul to expect anyone to spend time looking at your data. Sorry, me dear, I do not have the time or interest to look at more of your data to determine if THIS TIME it is valid. Once you have lost credibility, it is gone.

So, here is the thing, amazon. And it is obvious to any rational person. You have an agenda that is so obvious that you show yourself to be a dishonest hack. Not a source of research that has any reason to be trusted. So, as I keep saying to you. If someone posted information from move on.org, and had no other source than that, I would wonder what was wrong with that individual. I would not bother. But you, me dear, posted information from a non existent source. An organization that did not exist in the real world. Then you changed the source, and suggested that I was ignorant for not finding the new source, as though you had always used the name of the new, and existing source. Very very dishonest, me dear.
And the results you attributed to that NEW source actually do not exist. So, what can I assume?? Really, it is obvious. You had an agenda. You posted fictitious data to support your agenda. And when caught, you attack the person who found the dishonesty. Nice.

You have the gall to suggest the following:
I really don't know what position you believe you are in to determine which data seems accurate and what doesn't if you yourself admits that research isn't your strong suit.
Which is what you would like to say I said. But what I said was:
But I, who gladly admits that my thing is not research
I find research to be boring. I leave it to those with the resources to do it correctly. You know, the resources that you do not have. Really, me dear, putting words into someone's mouth is dishonest.

Then you produce a graph from sources of manufacturing workers, and numbers of documents in the National Register. Nice. So, is there a causative relationship??? You assume so, to prove what your agenda would like you to prove. Total nonsense. Total waste of everyone's time. Tacky, at a minimum. Dishonest, most likely.
 
Last edited:
YOu know what all this increased prodiction is really leading us to?

The poor will have high def TV to watch while they freeze to death in their homes.

We need to rewrite the social contract, folks.

If we do not then reality will rewrite it in blood
 
So, you stand by your chart. Good for you. I am not at all surprised.
Here is the thing, amazon. You can create charts. I can create charts. Or a whole number of others can create charts. The difference, me dear, is that simply because you say your data is valid is not convincing. If you come up with charts that show different outcomes than pretty much every im\partial source, then I do not have any reason to believe your outcomes. You see, when you post a result based on a fictitious organization, you really have lost all of your credibility. Shen you then change the name of your source to one with no credibility, one known as a hack organization with no credibility itself, you loose credibility. And when you post a result which is different than even that organization came up with, you loose credibility. Then you want to tell me that your data is valid, and that I should go check it out, you totally lack credibility. You post untruths, and get caught doing so, then have the unmitigated gaul to expect anyone to spend time looking at your data. Sorry, me dear, I do not have the time or interest to look at more of your data to determine if THIS TIME it is valid. Once you have lost credibility, it is gone.

So, here is the thing, amazon. And it is obvious to any rational person. You have an agenda that is so obvious that you show yourself to be a dishonest hack. Not a source of research that has any reason to be trusted. So, as I keep saying to you. If someone posted information from move on.org, and had no other source than that, I would wonder what was wrong with that individual. I would not bother. But you, me dear, posted information from a non existent source. An organization that did not exist in the real world. Then you changed the source, and suggested that I was ignorant for not finding the new source, as though you had always used the name of the new, and existing source. Very very dishonest, me dear.

I haven't posted any untruths nor have I lost any credibility. Your poor reading skills keeps you from understanding what is actually being presented and your vastly increasing economic ignorance doesn't give you that ability to determine what is credible and what is not. And you are far too intellectually dishonest to see it. Until you've shown you've improved on any of these merits, I am really not going to waste my time force feeding this information to you. It's already been displayed to everyone where feeding you information leads. Virtually nowhere.

If you are not going to limit your responses to discussing why my information is incorrect, then I'm not reading anything to post. Until then, my time will be spent discussing matters with other knowledgeable people.

And the results you attributed to that NEW source actually do not exist. So, what can I assume?? Really, it is obvious. You had an agenda. You posted fictitious data to support your agenda. And when caught, you attack the person who found the dishonesty. Nice.

I've already told you where to look. It's really not by jobs to educate you and all the funds in the world would not help accomplish this.

I find research to be boring. I leave it to those with the resources to do it correctly. You know, the resources that you do not have. Really, me dear, putting words into someone's mouth is dishonest.

Then you produce a graph from sources of manufacturing workers, and numbers of documents in the National Register. Nice. So, is there a causative relationship??? You assume so, to prove what your agenda would like you to prove. Total nonsense. Total waste of everyone's time. Tacky, at a minimum. Dishonest, most likely.

You asked where the data originated from. I showed it to you. Now you think it's nonsense. Another example of why you are really a waste of time.

Explain why I am wrong, or do not respond to me. It's that simple.
 
YOu know what all this increased prodiction is really leading us to?

The poor will have high def TV to watch while they freeze to death in their homes.

We need to rewrite the social contract, folks.

If we do not then reality will rewrite it in blood

What exactly does lower income individuals’ poor ability to prioritise their financing have to do with the social contract?
 
YOu know what all this increased prodiction is really leading us to?

The poor will have high def TV to watch while they freeze to death in their homes.

We need to rewrite the social contract, folks.

If we do not then reality will rewrite it in blood

What exactly does lower income individuals’ poor ability to prioritise their financing have to do with the social contract?

Generally I am loathe to interrupt such an emotionally satisfying exchange of invective, but this is a great time to interject something I've been thinking about for a while. Just like abnormal psychology can explain some crime, but not our high rate of incarceration; I think that "structural" and sociological reasons for labor force phenomena like low wages and unemployment are not sufficient. Granted some people have "poor ability to prioritize their financing" and that this in given cases is a cause of poverty. But the large number of poor people, especially working poor, seems to me to suggest that the problem is more than individual behavior of the poor. And that DOES lead to a re-examination of the social contract.

When the unemployment rate hit 10.7% under Reagan, did we conclude that suddenly Americans had become lazy? Or that when the unemployment rate was cut in half that they suddenly had become virtuous? Of course not. Foreclosures are not the result of moral turpitude in most cases, but the result of extended unemployment. When people are confronted with losing their home and have been working and making payments for years, I find it difficult to believe that they are not doing everything possible to find a job. At least that's what I observe in the world I live in.
 
Unemployment – especially mass unemployment – causes devastating losses on a daily basis in income and output. The macroeconomic losses can be staggering. Besides decreased output, our country end ends up with decreased human capital, a breakdown of family cohesion, drug abuse, crime, decreased life expectancy; social values are thrown out the window, etc. This is also a generational problem at the end of the day.

Our current unemployment situation tells that the deficit is still too small. We should be focused on a Job Guarantee to employ any and all productive capacity.
 
YOu know what all this increased prodiction is really leading us to?

The poor will have high def TV to watch while they freeze to death in their homes.

We need to rewrite the social contract, folks.

If we do not then reality will rewrite it in blood

What exactly does lower income individuals’ poor ability to prioritise their financing have to do with the social contract?

Generally I am loathe to interrupt such an emotionally satisfying exchange of invective, but this is a great time to interject something I've been thinking about for a while. Just like abnormal psychology can explain some crime, but not our high rate of incarceration; I think that "structural" and sociological reasons for labor force phenomena like low wages and unemployment are not sufficient. Granted some people have "poor ability to prioritize their financing" and that this in given cases is a cause of poverty. But the large number of poor people, especially working poor, seems to me to suggest that the problem is more than individual behavior of the poor. And that DOES lead to a re-examination of the social contract.

When the unemployment rate hit 10.7% under Reagan, did we conclude that suddenly Americans had become lazy? Or that when the unemployment rate was cut in half that they suddenly had become virtuous? Of course not. Foreclosures are not the result of moral turpitude in most cases, but the result of extended unemployment. When people are confronted with losing their home and have been working and making payments for years, I find it difficult to believe that they are not doing everything possible to find a job. At least that's what I observe in the world I live in.

If you are trying to suggest that I believe the poor are only improvised because of their own action that is not what I am getting at. Equally, I don't expect people to suggest that the poor are impoverished due to the action or inaction of others. Everyone has their own concept of what the good life is, and each individual is responsible for creating their own solutions to achieve their goals in life. Some people are better at this than others.

Does this necessarily indicate that other people are better at making individual choices than others? It may very well could. There are people are who unemployed or underemployed. There are those who would suggest it is the lack of education that is the problem which makes the uneducated less likely to obtain work. Others would suggest that the market is over saturated with educated individuals and there are not people in the workforce with marketable skills required to earn these positions. There are people who are raising their family on a minimum wage. There are those who suggest that minimum wage should increase with the cost of living. Others would suggest that you shouldn't be trying to have a family without making sure you have enough to support them. People have goals and figure out the best ways to obtain them. I don't see how the social contract applies here, unless someone is suggesting that we have the natural right to everything that makes us a more prosperous society.

Everyone values different things. If you would rather have High Definition Television and no essentials such as heat or food, then that's good for you. I happen to believe this is very poor financing, but who am I to determine what another person's needs are? If people believe it is more beneficial to them to make sure a person has a High Definition TV over a heating unit or having an expensive cell phone over a few dollars less to eat for lunch for a month, that's their decision. After all, people do have a right to a High Definition TV or an Expensive Phone any more than they have the right to a standard of living. One of the biggest confusing about rights which many people are guilty of making is that there are different sorts of rights. Besides the distinction between legal and moral rights, we also need to distinguish the different sorts of claims the assertion of a right makes.
 
Last edited:
It is funny. Watching this issue over the years, you have to come to the conclusion that the well to do versus poor issue is pretty much a political football. Happily for those wanting to bastardize the poor, there are enough lazy folks to point at. However, that is hardly the overall problem. Kind of like how many times should those same clowns pointing at the poor pointed at the opposite side of things, and pointed at how wonderful Bill Gates is.
If you look at bankruptcy, last time I saw the causes, medical costs were number 1. But there are a number. And economic downturns and resultant unemployment is obviously a huge issue. Then you get the same clowns saying that all those unemployed are not trying to find a job, and are simply enjoying the public largess. They see the ceo making tens or hundreds of millions per year as a virtuous and wonderful person. But they see the automated machine worker, who has spent decades learning his craft and is HIGHLY skilled, but now unemployed, as a moocher. Sad.
Kind of gets down to types of people. Some believe people are mostly good. Others believe that people are mostly bad.
 
Progressivism is the art of thinking your better then others and never taking the blame for your fuck ups,. As this thread shows even from the OP.
 
Last edited:
If you are trying to suggest that I believe the poor are only [impoverished] because of their own action that is not what I am getting at. Equally, I don't expect people to suggest that the poor are impoverished due to the action or inaction of others. Everyone has their own concept of what the good life is, and each individual is responsible for creating their own solutions to achieve their goals in life. Some people are better at this than others.

I think a good part of this is poor communication, so let me try it again. Differing values, skills, and discipline go a long way in accounting for individual success or failure. In this sense they explain the composition of people with low incomes. What they are not good at is explaining is the overall level of poverty or changes in rates of employment or poverty.

Now where I think that we really differ is explaining the longitudinal changes and the remedies looking forward.

I don't see how the social contract applies here, unless someone is suggesting that we have the natural right to everything that makes us a more prosperous society.

I think I've stated elsewhere why I think the idea of a "social contract" is a bad idea, but I'll briefly hit the high points again. Contract law is not a good fit for the issues covered, and there is no real self-enforcement mechanism for a "social contract". Not everyone agreed when the contract was made and every group seems to have a little different understanding of what it meant. This makes the idea problematical.

IMHO a better framework is to recognize that most parts of society (98% or more of the population) will be better off in a stable society with a growing economy. While concepts like "fairness" can be a little too plastic, I think that certain goals like positive income growth for all quintiles of the population, can be used as a good proxy for what is needed for social stability. This doesn't imply that all five groups have to have the same growth rate (personally I would like to see convergence with lower quintiles having a faster growth rate) but it does entail that the top group not have a high growth rate while the lower groups have a declining or stagnant growth rate.

This type of framework has the advantage that it is readily measurable, we measure it now. Without getting into revolutionary claptrap from either right or left, I think there is a consensus that political and social stability improve when we have economic growth and the benefits of that growth are seen in all significant parts of society.

So we can all probably agree that a lot of people currently unemployed and poor would be better off if they could be usefully employed and earning incomes. And of course society would be better off if they were employed. Currently there are about five unemployed for every job listing, so that if every job were filled tomorrow there would still be a lot of unemployed. There are two explanations for the unemployment problem, and they imply radically different (but not mutually exclusive!) remedies. The first is the "structural" argument, that there will be enough jobs if we just had the right people to fill them. Education, job training, and a good dose of career counseling are the implied remedies. The second is that we have a shortfall in effective demand and when there is more demand from exports, investment, consumption, and even government; we will have more jobs. I really don't see why we don't do both. We can adjust the mix as work out of the slump.
 
If you are trying to suggest that I believe the poor are only [impoverished] because of their own action that is not what I am getting at. Equally, I don't expect people to suggest that the poor are impoverished due to the action or inaction of others. Everyone has their own concept of what the good life is, and each individual is responsible for creating their own solutions to achieve their goals in life. Some people are better at this than others.

I think a good part of this is poor communication, so let me try it again. Differing values, skills, and discipline go a long way in accounting for individual success or failure. In this sense they explain the composition of people with low incomes. What they are not good at is explaining is the overall level of poverty or changes in rates of employment or poverty.

Now where I think that we really differ is explaining the longitudinal changes and the remedies looking forward.

I don't see how the social contract applies here, unless someone is suggesting that we have the natural right to everything that makes us a more prosperous society.

I think I've stated elsewhere why I think the idea of a "social contract" is a bad idea, but I'll briefly hit the high points again. Contract law is not a good fit for the issues covered, and there is no real self-enforcement mechanism for a "social contract". Not everyone agreed when the contract was made and every group seems to have a little different understanding of what it meant. This makes the idea problematical.

IMHO a better framework is to recognize that most parts of society (98% or more of the population) will be better off in a stable society with a growing economy. While concepts like "fairness" can be a little too plastic, I think that certain goals like positive income growth for all quintiles of the population, can be used as a good proxy for what is needed for social stability. This doesn't imply that all five groups have to have the same growth rate (personally I would like to see convergence with lower quintiles having a faster growth rate) but it does entail that the top group not have a high growth rate while the lower groups have a declining or stagnant growth rate.

This type of framework has the advantage that it is readily measurable, we measure it now. Without getting into revolutionary claptrap from either right or left, I think there is a consensus that political and social stability improve when we have economic growth and the benefits of that growth are seen in all significant parts of society.

So we can all probably agree that a lot of people currently unemployed and poor would be better off if they could be usefully employed and earning incomes. And of course society would be better off if they were employed. Currently there are about five unemployed for every job listing, so that if every job were filled tomorrow there would still be a lot of unemployed. There are two explanations for the unemployment problem, and they imply radically different (but not mutually exclusive!) remedies. The first is the "structural" argument, that there will be enough jobs if we just had the right people to fill them. Education, job training, and a good dose of career counseling are the implied remedies. The second is that we have a shortfall in effective demand and when there is more demand from exports, investment, consumption, and even government; we will have more jobs. I really don't see why we don't do both. We can adjust the mix as work out of the slump.
Way too rational for this board, probably. But other than that, I agree completely. But I am going to duck. I see incoming.
 
I think I've stated elsewhere why I think the idea of a "social contract" is a bad idea, but I'll briefly hit the high points again. Contract law is not a good fit for the issues covered, and there is no real self-enforcement mechanism for a "social contract". Not everyone agreed when the contract was made and every group seems to have a little different understanding of what it meant. This makes the idea problematical.

IMHO a better framework is to recognize that most parts of society (98% or more of the population) will be better off in a stable society with a growing economy. While concepts like "fairness" can be a little too plastic, I think that certain goals like positive income growth for all quintiles of the population, can be used as a good proxy for what is needed for social stability. This doesn't imply that all five groups have to have the same growth rate (personally I would like to see convergence with lower quintiles having a faster growth rate) but it does entail that the top group not have a high growth rate while the lower groups have a declining or stagnant growth rate.

This type of framework has the advantage that it is readily measurable, we measure it now. Without getting into revolutionary claptrap from either right or left, I think there is a consensus that political and social stability improve when we have economic growth and the benefits of that growth are seen in all significant parts of society.

So we can all probably agree that a lot of people currently unemployed and poor would be better off if they could be usefully employed and earning incomes. And of course society would be better off if they were employed. Currently there are about five unemployed for every job listing, so that if every job were filled tomorrow there would still be a lot of unemployed. There are two explanations for the unemployment problem, and they imply radically different (but not mutually exclusive!) remedies. The first is the "structural" argument, that there will be enough jobs if we just had the right people to fill them. Education, job training, and a good dose of career counseling are the implied remedies. The second is that we have a shortfall in effective demand and when there is more demand from exports, investment, consumption, and even government; we will have more jobs. I really don't see why we don't do both. We can adjust the mix as work out of the slump.

I don't think there is a shortfall of effective demand. The only component which has tapered off some is the Government. In the Private Sector you have a couple of businesses missing the earnings thresholds but mostly sales are up. Effective demand has essentially become endless. We may have a shortfall of aggregate demand of which PCE has not recovered from pre-recession trends; however, comparing current trends with pre-recession trends involves comparing the current economy with a bubble economy. It's not an viable benchmark we should consider.

Unemployment today is often a mismatch between the skills young adults’ posses and the skills the market requires. Younger individuals already have less experience and training, but even with individuals with college degrees find that they do not possess the experience employers are looking for. Most young individuals already don't have an idea of which careers they want to pursue, as well as those who do not have the aptitude for any academia pursuits. It's counter-intuitive to consult and persuade these individuals into taking career paths which are best for them. You can go much further with the unemployment problem by eliminating legal barriers to entry. There is no reason why individuals should have a roadblock from merely trying something which makes their life better.

Social stability requires people having as much control over their own lives as possible. Everyone has their own conception of 'The Good Life.' It doesn't come in a 'One Size Fits All' template. We all value different things and pursue different ends. We have different ideas about how to make trade-offs and about the various opportunities & cost we face. Only when we can give everyone an extensive sphere of economic liberty can we give everyone the power to shape their own lives for themselves. It's more than just the ability to earn more or keep more of what you earn.
 
Of the ATM example, I think it's not that one sided. ATM shortens the work time needed for clerks, it also shortens the time clients needed to do transactions, which is the main point IMO. When time is saved, there is a chance that jobs in recreation industry well be created.
 
I don't think there is a shortfall of effective demand.

Most estimates of the shortfall in output put the gap at around $2 trillion for the last five years. If there is no shortfall in effective demand, why is there this shortfall in output?

In the Private Sector you have a couple of businesses missing the earnings thresholds but mostly sales are up. Effective demand has essentially become endless. We may have a shortfall of aggregate demand of which PCE has not recovered from pre-recession trends; however, comparing current trends with pre-recession trends involves comparing the current economy with a bubble economy. It's not an viable benchmark we should consider.

You're parsing words. If you believe that "effective demand has essentially become endless" you must believe that consumption is not income constrained. Must be nice in your world.

As for the Baltic gambit (Estonia or Latvia, it alternates every month) that claims that the pre-recession period was a "bubble economy" and thus is not a good comparative measure; I've heard this argument a lot but never seen a set of numbers (let alone a convincing set!) that made the case. I'm having trouble with the concept that an economy can run at over 100% capacity without significant inflationary pressure.

Unemployment today is often a mismatch between the skills young adults’ posses and the skills the market requires. Younger individuals already have less experience and training, but even with individuals with college degrees find that they do not possess the experience employers are looking for. Most young individuals already don't have an idea of which careers they want to pursue, as well as those who do not have the aptitude for any academia pursuits. It's counter-intuitive to consult and persuade these individuals into taking career paths which are best for them. You can go much further with the unemployment problem by eliminating legal barriers to entry. There is no reason why individuals should have a roadblock from merely trying something which makes their life better.

OK, I agreed that there is some structural unemployment, but in a world where EVERY business sector and job category was in decline at the same time everywhere, that explanation just doesn't wash. If there is a matching problem sufficient to create this level of unemployment, where are all those unfilled jobs?

Social stability requires people having as much control over their own lives as possible. Everyone has their own conception of 'The Good Life.' It doesn't come in a 'One Size Fits All' template. We all value different things and pursue different ends. We have different ideas about how to make trade-offs and about the various opportunities & cost we face. Only when we can give everyone an extensive sphere of economic liberty can we give everyone the power to shape their own lives for themselves. It's more than just the ability to earn more or keep more of what you earn.

This gets out of the realm of economics. Personally I believe that if the majority of Americans voted anything close to there self-interest, we would hear screams from the wealthy. As long as they get to call the shots they are happy. When it looks like they may have to share power and make concessions, suddenly everything is a morality tale, and the foundations of the universe are being shaken. "Economic liberty" has become a code for privileges for the rich only. The affluent have become contemptuous of the working classes as the distance from them recedes. Most ruling classes that survive at least made an attempt to fake a sense of community and gave lip service to labor, but too many have contempt for those less wealthy than themselves and think that there is something "cute" about waving the bloody flag.

You think that your economic liberties are constrained by government. Rising inequality creates the conditions for the loss of economic freedoms, as well as political ones.
 
Rising inequality creates the conditions for the loss of economic freedoms, as well as political ones.

how can you not have rising inequality when liberal corporate taxes are highest in world, when liberal unions drove 40 million jobs offshore, when liberals invited 20 million illegals in to take their jobs, when liberal unions destroyed the public school system, and when liberal welfare programs destroyed the family?

Fix those and then tell us what is happening to inequality.
 

Forum List

Back
Top