Written by Steven Hansen It is no secret that the minimum wage is too low. It puts literally all families below the poverty level if one works less than 40 hours per week.
by Karl Smith, Modeled Behavior Editor’s Note: Some references for readers who need background on the concept of structural unemployment would include Wikipedia, Paul Krugman and Gary Becker/Robert Posner. One reason to think that this recession is not structural, at least in the way that some people have argued, is to look at state-by-state performance. …
by Guest Author Andrew Butter
The essential theory of BubbleOmix is that Ying follows Yang or in other words What Goes-Around Comes Around.
Putting aside all the doom and gloom about the recently released unemployment figures, there may be a silver line…tarnished but silver all the same.
The important number is employment, that’s the demand side of the equation which is broadly independent of the supply side. Companies (and the government too but they are never a good marker for free-enterprise), look to buy services, The fact that there may be a lot of unemployed (and unemployable) people doesn’t change the numbers of jobs on offer; it just changes the wages the jobs pay…slightly.
There seem to be some weak and also some fairly good correlations between foreclosures and unemployment. However, there seem to be other factors as well. States with the largest housing bubbles all fall in the group of states with the biggest foreclosure problems. Perhaps a combination of size of bubble and high unemployment could explain which states have the biggest foreclosure problems.