{"id":26248,"date":"2017-09-29T19:57:02","date_gmt":"2017-09-30T00:57:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26248"},"modified":"2017-09-29T19:57:02","modified_gmt":"2017-09-30T00:57:02","slug":"the-us-economy-is-failing","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26248","title":{"rendered":"The US Economy Is Failing"},"content":{"rendered":"

The US Economy Is Failing<\/a><\/h3>\n

Do the Wall Street Journal\u2019s editorial page editors read their own newspaper?<\/p>\n

The frontpage headline story for the Labor Day weekend was \u201cLow Wage Growth Challenges Fed.\u201d Despite an alleged 4.4% unemployment rate, which is full employment, there is no real growth in wages. The front page story pointed out correctly that an economy alleged to be expanding at full employment, but absent any wage growth or inflation, is \u201ca puzzle that complicates Federal Reserve policy decisions.\u201d<\/p>\n

On the editorial page itself, under \u201cletters to the editor,\u201d Professor Tony Lima of California State University points out what I have stressed for years: \u201cThe labor-force participation rate remains at historic lows. Much of the decrease is in the 18-34 age group, while participation rates have increased for those 55 and older.\u201d Professor Lima points out that more evidence that the American worker is not in good shape comes from the rising number of Americans who can only find part-time work, which leaves them with truncated incomes and no fringe benefits, such as health care.<\/p>\n

Positioned right next to this factual letter is the lead editorial written by someone who read neither the front page story or the professor\u2019s letter. The lead editorial declares: \u201cThe biggest labor story this Labor Day is the trouble that employers are having finding workers across the country.\u201d The Journal\u2019s editorial page editors believe the solution to the alleged labor shortage is Senator Ron Johnson\u2019s (R.Wis.) bill to permit the states to give 500,000 work visas to foreigners.<\/p>\n

In my day as a Wall Street Journal editor and columnist, questions would have been asked that would have nixed the editorial. For example, how is there a labor shortage when there is no upward pressure on wages? In tight labor markets wages are bid up as employers compete for workers. For example, how is the labor market tight when the labor force participation rate is at historical lows.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

The US Economy Is Failing Do the Wall Street Journal\u2019s editorial page editors read their own newspaper? The frontpage headline story for the Labor Day weekend was \u201cLow Wage Growth Challenges Fed.\u201d Despite an alleged 4.4% unemployment rate, which is full employment, there is no real growth in wages. The front page story pointed out […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16228,2951,16227,841,861],"class_list":["post-26248","post","type-post","status-publish","format-standard","hentry","category-economics","tag-california-state-university","tag-paul-craig-roberts","tag-tony-lima","tag-us-economy","tag-wall-street-journal"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26248"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26248\/revisions"}],"predecessor-version":[{"id":26249,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26248\/revisions\/26249"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}