Professor Mark J. Perry's Blog for Economics and Finance
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this piece got me to thinking about something:a potential explanation (or at least a significant contributor) to the persistent unemployment we are seeing in this downturn is likely negative home equity.one of the reasons the US has been far less prone to long term unemployment that its european peers is the simple fact that americans are mobile. we move where the jobs are. if you are significantly underwater on a mortgage, this is much more difficult. it sort of locks you in place. if your outstanding loan exceeds to value of your home, you may not be able to afford to move.sure, you can default and turn in the keys, but that sort of credit blot is hardly the sort of thing you want to take to a new city and live under for 7 years. i have no idea how you would go about quantifying this effect, but if anyone has seen research on this, i'd love to look at it.
Or maybe the business just wants undeserved treatment. Throwing unreasonable/unjustifiable qualifications in, asking for more risk be put on the employees/contractors while asking them to take less reward, and parking close to $2T of assets in wait of someone who meet their unreasonable demands.How about just making it harder for them to refuse and see what happens?
"How about just making it harder for them to refuse and see what happens?"...No suprise here, sethstorm as ususal is always willing to spend someone else's money instead of his own...See what your liberal tools in Congress have accomplished sethstorm?From the Employment Policies Institute: The Teen Employment Crisis: The Effects of the 2007 - 2009 Federal Minimum Wage Increases on Teen EmploymentOn May 24, 2007, Congress passed legislation to increase the federal minimum wage from $5.15 to $7.25. Speaker of the House Nancy Pelosi captured the general mood in Washington when she exclaimed that “millions of hardworking Americans will be getting a raise.” The public was also supportive, with polls showing broad approval of Congress’ efforts to raise the minimum wage.
Ironman over at Political Calculations has an interesting post: What Kind of Job Can You Hope to Get with Your Education?Note the first paragraph: Georgetown University's Center on Education and the Workforce is out with its latest publication: Help Wanted: Projections of Jobs and Education Requirements Through 2018 (link included). The report, written by Anthony P. Carnevale, Nicole Smith and Jeff Strohl, attempts to forecast what kinds of jobs will be available in the future along with their education requirements, in an attempt to help today's high school and college students, along with working adults seeking career advancement, determine what kind of education they'll need to acquire to be able to find the kind of work they want to do in the future...
did you notice that the disclaimer said that only 5 counties in a state could be included in this list? imagine if that restriction weren't there. go texas!
juandos said...You only make my case better.Connect the unemployed with the work and then train as relevant to said work. No matter what industry.
"Connect the unemployed with the work and then train as relevant to said work. No matter what industry"...Well then sethstorm here's your chance to put your money where your keyboard is...Open your wallet and pay for the training of said unemployed...
juandos said: - "Well then sethstorm here's your chance to put your money where your keyboard is..."If I'm not mistaken, sethstorm is receiving extended unemployment benefits. So, a better suggestion might be"...put our money where your keyboard is."
juandos said......except that I am one of those unemployed. When the private sector is trying to avoid a recovery in a politically bad time(through lack of willingness to employ the unemployed on a good-faith, direct-hire basis), they need all the prodding they can get. The businesses are asking things of people that the businesses do not do themselves.You're more concerned about who has the claim to the money. I'm more concerned about the attempt to have a recovery only happen when the correct politician is in office.
"...except that I am one of those unemployed"...So what are you saying sethstorm, you're to good to get a job at Walmart or the local quickie mart while you look for something better?"When the private sector is trying to avoid a recovery in a politically bad time(through lack of willingness to employ the unemployed on a good-faith, direct-hire basis), they need all the prodding they can get"...Businesses are NOT in business to make sure someone gets a paycheck..."The businesses are asking things of people that the businesses do not do themselves"...So what? People don't have to do it if they don't want to..."I'm more concerned about the attempt to have a recovery only happen when the correct politician is in office"...Since the money belongs to these 'evil businesses' its strictly up to them to spend when and how they want to...
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Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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