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Job growth has slowed sharply; the question is why

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Re: Job growth has slowed sharply; the question is why

#91

Post by Volundr »

andsoitis wrote: post #77
Volundr wrote: post #64

Earlier quoted context omitted.

Ok, what do they do with it, and how does effect the economy compared to the way lower wealth people behave when they receive money? FWIW I do agree that if we give Jeff Bezos or Elon Musk more money, it's not headed straight for an account in the Caymans, but I also don't think the exact destination of said money is core to the point.

> what do they do with it, and how does effect the economy compared to the way lower wealth people behave when they receive money? Most of the wealth of the top 1% (to pick an arbitrary "small group of people") is not sitting as cash in the bank; it is concentrated in financial and business assets: equities & mutual funds, private businesses, real estate, bonds and other fixed-income investments, alternative assets.…

Great! So how does that compare in economic impact to spending it?

I can help with that: it doesn't. If I buy stock, it doesn't create demand for... Anything. Unless it was stock bought from the company itself it doesn't give the company any more funds to work with. It doesn't help the company produce more, nor does it create demand that would encourage them to do so.

Re: Job growth has slowed sharply; the question is why

#92

Post by lantry »

bitshiftfaced wrote: post #69
dileeparanawake wrote: post #2

Increasing wealth inequality, drives prices inflation, wage stagnation and less disposable income, driving less consumption, driving less revenue for businesses, meaning cuts happen and hiring freezes, drives slowing growth in new job market.

> Increasing wealth inequality, drives prices inflation Why?

when the fed lowers the rates, who benefits?

Re: Job growth has slowed sharply; the question is why

#94

Post by youniverse »

bitshiftfaced wrote: post #69
dileeparanawake wrote: post #2

Increasing wealth inequality, drives prices inflation, wage stagnation and less disposable income, driving less consumption, driving less revenue for businesses, meaning cuts happen and hiring freezes, drives slowing growth in new job market.

> Increasing wealth inequality, drives prices inflation Why?

The idea is that if you have 1 billion in assets, let's say you make 5% per year, that's 4 million a month income. That money goes to into assets.

Plus the fact that in last 5 years assets have gone up so much means there's just a lot of wealth being invested.

Re: Job growth has slowed sharply; the question is why

#95

Post by karmakurtisaani »

rufus_foreman wrote: post #83
davidw wrote: post #10

I have been enjoying Paul Krugman's writing, now that he's free from the shackles of the New York "both sides!" Times https://paulkrugman.substack.com/p/its-beginning-to-smell-a-... He's obviously got a political angle, but doesn't let that completely color his economic analysis.

On election night when Trump was elected in 2016, Krugman wrote in the NYT that the markets would never recover, and that there would probably be "a global recession, with no end in sight". He definitely lets his political angle completely color his economic analysis. Now that Trump is back in the White House we are of course doomed, same as the last time he was in the White House, same as the next time. If you've go…

> Krugman wrote in the NYT that the markets would never recover, and that there would probably be "a global recession, with no end in sight".

I think this needs some context. Remember that in 2016 we didn't know how Trumps rhetoric works and how seriously he will push his agendas. Now we know about TACO and how he was held back by the adults in the room. How would you feel about the future if you thought the POTUS will annex Greenland and Canada, and impose tariffs of 100-200% globally?

Re: Job growth has slowed sharply; the question is why

#96

Post by Jensson »

dragonwriter wrote: post #33
thankyoufriend wrote: post #29

Earlier quoted context omitted.

Economics is political.

Politics and economics are two different lenses on the same subject matter, because “wealth” and “power over others” are two different ways of saying the same thing. This is also why capitalism and democracy become progressively more clearly opposed the farther the status quo environment you are working in gets from feudalism or absolute monarchy, under which both seem to be changes in the same direction.

> This is also why capitalism and democracy become progressively more clearly opposed

You mean linked? Capitalism is what lets the people make economic decisions, democracy is what lets people make political decisions. I think you mean communisms where people can't make economic decisions is what's oppose democracy.

Re: Job growth has slowed sharply; the question is why

#97

Post by RickJWagner »

davidw wrote: post #10

I have been enjoying Paul Krugman's writing, now that he's free from the shackles of the New York "both sides!" Times https://paulkrugman.substack.com/p/its-beginning-to-smell-a-... He's obviously got a political angle, but doesn't let that completely color his economic analysis.

Krugman is great if you want confirmation of your left-side ideas.

But he’s terrible if you want criticisms of left-side ideas, or if you want to hear about right-side policies that are working well.

To me, that’s of very limited utility.

Re: Job growth has slowed sharply; the question is why

#98

Post by ebiester »

klipt wrote: post #34
ebiester wrote: post #20

Earlier quoted context omitted.

Reduced demand in tech due to constraints of capital, and increased demand in agricultural and low wage jobs where immigrant labor was significant. But funny enough, we can't just ship 100k software developers from the bay to the central valley and it just work.

> just ship 100k software developers from the bay to the central valley and it just work But you could pitch a startup idea to replace those workers with agricultural robotics and collect some of that sweet AI venture capital!

Do you have any idea of how much money has gone into this already? Agriculture is an awful job. It's at the top of the list of jobs we would love to completely automate.

It turns out it's a hard problem because computer vision is hard, and we've had a lot of agtech investment already.

Re: Job growth has slowed sharply; the question is why

#99

Post by dragonwriter »

Jensson wrote: post #96
dragonwriter wrote: post #33

Earlier quoted context omitted.

Politics and economics are two different lenses on the same subject matter, because “wealth” and “power over others” are two different ways of saying the same thing. This is also why capitalism and democracy become progressively more clearly opposed the farther the status quo environment you are working in gets from feudalism or absolute monarchy, under which both seem to be changes in the same direction.

> This is also why capitalism and democracy become progressively more clearly opposed You mean linked? Capitalism is what lets the people make economic decisions, democracy is what lets people make political decisions. I think you mean communisms where people can't make economic decisions is what's oppose democracy.

> You mean linked?

No, I meant exactly what I said.

> Capitalism is what lets the people make economic decisions

No, it isn't. Capitalism is the organization of power around a narrow elite defined by the ownership of the non-financial means of production, the feature for which it was named. It was (at least initially) progress in the direction of democracy from control of the same thing being in even narrower hands than the early mercantile class defined by ownership of land under systems like feudalism, to be sure.

But, still, ultimately it conflicts with the equal distribution of power defining democracy.

They are rationalized as consistent by pretending that economic and political power are different things, rather than different applications of the same, undivided, power.

Re: Job growth has slowed sharply; the question is why

#100

Post by rufus_foreman »

karmakurtisaani wrote: post #95
rufus_foreman wrote: post #83

Earlier quoted context omitted.

On election night when Trump was elected in 2016, Krugman wrote in the NYT that the markets would never recover, and that there would probably be "a global recession, with no end in sight". He definitely lets his political angle completely color his economic analysis. Now that Trump is back in the White House we are of course doomed, same as the last time he was in the White House, same as the next time. If you've go…

> Krugman wrote in the NYT that the markets would never recover, and that there would probably be "a global recession, with no end in sight". I think this needs some context. Remember that in 2016 we didn't know how Trumps rhetoric works and how seriously he will push his agendas. Now we know about TACO and how he was held back by the adults in the room. How would you feel about the future if you thought the POTUS wi…

>> How would you feel about the future if you thought the POTUS will annex Greenland and Canada, and impose tariffs of 100-200% globally?

I would keep the exact same asset allocation that I have now.

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