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Is current unemployment structural (vs. cyclical)? Include thoughts on how this effects the end of QE3.

Asked by: flaskblob
  • Employment is a structural issue. The fed is wrong in using it as a criteria for the end of QE

    Employment is a structural issue. The fed is wrong in using it as a criteria for the end of QE. This is a mismatch between skills and what the economy demands. Too many have received college degrees in underemployed majors. Companies are doing more with less and the encouragement of the Obama administration to move more to food stamps and disability has created a dependency class of unemployables with no job skills and no experience.

    Sources include the population ratio, labor force participation rate, and the employment rate.
    As is evident from these three graphs, people are dropping out of the labor force and employment is not even kind of improving since 2008.

    EMPLOYMENT TO POPULATION RATIO
    http://data.Bls.Gov/timeseries/LNS12300000

    UNEMPLOYMENT RATE
    http://data.Bls.Gov/timeseries/LNS14000000

    LABOR FORCE PARTICIPATION RATE
    http://data.Bls.Gov/timeseries/LNS11300000

  • Unemployment and stagnation are becoming permanent

    Unemployment is becoming more and more a permanent feature of the economy, due to various factors, but chief was which is increasing automation and roboticization of the economy. But the general stagnation of the economy is more due to inherent features of capitalism rather than simple technological advances or changes in policy.


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