'Macro' Forces in Market Confound Stock Pickers - WSJ.com

' WHAT WILL BALANCE OUT LABOR SUPPLY AND DEMAND?: Macro' Forces in Market Confound Stock Pickers - WSJ.com: "

Here is the key and the obvious answer to high unemployment:

'...economic overcapacity that has resulted in persistent high unemployment rates...'

Labor is one of the production inputs. Since it is clearly being substituted for, it is clearly too expensive. But, of course, that's the problem that can't be touched (see union strikes and government policies to raise both the direct and indirect costs of labor to satisfy social concerns more important than joblessness, like fancy healthcare, early retirement, unsaved for pensions, etc.).

To bring the labor cost and demand equation back into balance will certainly take something that's not in the 'macro' picture now. Someone could start taking bets; but, then again, some already have.

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