A Doleful Jobs Report - Barrons.com
Another favorite question for the Big O would be to start to think about clearing prices for labor.
In particular this would apply to new highway jobs.
Why not get rid of the requirement to pay prevailing union wages?
Sure, it would be nice to have everyone making lots of money; but, if there is high unemployment, let the market determine when someone is willing to work.
And, besides being willing to work, why encourage not working with generous benefits and extended unemployment?
The economy should be focused on production and putting people to work.
Tom Keene has been on almost a tirade about thinking a bit more inflation can cure what is ailing the economy. I'm not sure of his real thinking here; but, he sure seems to be warming to the thought.
But, as I recall this was one of the big mistakes of the 1970s.
And, inflation does nothing to balance out the supply and demand issues for labor and investment and production.
As a clear example here one can look at the labor and regulatory environments of Texas and California.
So far, Obama is a California regulatory type and last I read, California has been particularly out of it in terms of job creation lately - unlike Texas.
So, if Obama doesn't do more than deal with ozone regulations and changes to the cost of labor from government spending, his speech will be hollow at best. In fact, it will be Greek-like.
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