Saturday, September 10, 2011

Things I say that exasperate my lovely wife

Caught between globalization and productivity gains, high paying jobs for low skilled American workers are disappearing. The era of mass employment in the USA is coming to an end. The new equilibrium is going to be an employment ratio of well below 50% and a lot more redistribution. This will happen within the next 20 years. In equilibrium, the marginal American will be indifferent between being a "lucky loser" and being at the bottom of the skilled worker distribution.

3 comments:

John Thacker said...

I see you carefully avoid saying whether this is a good or a bad thing. It doesn't necessarily have to be bad.

Angus said...

I tell her "it's not the singularity, but it's not the end of the world either". I think it very much could be OK.

Tom said...

It will not be OK, because Congress will be in session. They will act; they will have to. The next year (because things have gotten worse) they will act again. And the next year, and the next year...

There is no end of the mischief these people can devise. Their constituents are unhappy, so they must DO something!