If there’s something awry in the logic of Larry Summers’ argument here for more infrastructure investment, I certainly can’t see it. Based on low real interest rates, still high unemployment particularly among blue-collar production and construction workers, and most of all, the need for productivity-enhancing investments in our aging public goods, Larry is very much… Read more
To open our full employment event last week, Larry Summers presented an extremely compelling case for the importance of using fiscal policy to close our persistent output gaps, lower unemployment, and repair some of the economic damage resulting from “austerity,” i.e., reducing budget deficits in weak economies. At the same time Larry was presenting this… Read more
Over at the NYT Economix blog: the flow point I made earlier here at OTE, getting back to ground zero on private sector jobs is not much to crow about, and sure, there’s a bit of wage growth, but nothing to get all wound up about, inflation-wise.
I’ve got a longer piece on job market indicators going up later on the NYT blog, but for now, here’s a factoid that I thought deserved a look. To my mind, one of the most important labor market questions right now is whether the labor force participation rate will start climbing back out of its… Read more
A broadly positive jobs report just out for March shows that payrolls were up by 192,000 and both the labor force and weekly hours worked grew as well. The jobless rate was unchanged at 6.7%, but the closely watched labor force participation rate popped up two-tenths to 63.2%, as about 500,000 entered the labor market. … Read more