Economics @ ITT

Youth Unemployment Still Unrelenting in Europe

Posted in economics by ittecon on July 16, 2015

According to Eurostat, youth unemployment is still unrelenting across Europe. In March 2015, the most recent month where data is available for all 28 EU nations, Spain had the worst unemployment rate for people under 25 years of age, 49.9 percent. Greece was only marginally better off with 49.7 percent.

via • Chart: Youth Unemployment Still Unrelenting in Europe | Statista.

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Youth Unemployment Is Costing the World Billions

Posted in economics by ittecon on January 23, 2014

In the U.S., the crisis is costing American taxpayers $25 billion annually in the form of lost tax revenue and government benefit payouts, according to a recent report by Young Invincibles, an advocacy organization for young people.

Youth Unemployment Is Costing The World Billions.

The Incredible Shrinking US Labour Force

Posted in economics by ittecon on September 6, 2013

Over the past three months, the U.S. economy has averaged 148,000 new jobs per month. That’s actually a slower pace than the previous six months. Yet the unemployment rate keeps dropping precipitously, reaching 7.3 percent in August — the lowest since December 2008. The reason? Between July and August, 312,000 people dropped out of the labor force. But because the official unemployment rate counts only those workers who are actively seeking work, the unemployment rate fell.

via Three reasons the U.S. labor force keeps shrinking.

Amazon Unpacked – Why the UK is Less than Thrilled with Amazon.com

Posted in economics by ittecon on July 23, 2013

As online shopping explodes in Britain, helping to push traditional retailers such as HMV out of business, more and more jobs are moving from high-street shops into warehouses like this one. Under pressure from politicians and the public over its tax arrangements, Amazon has tried to stress how many jobs it is creating across the country at a time of economic malaise. The undisputed behemoth of the online retail world has invested more than £1bn in its UK operations and announced last year that it would open another three warehouses over the next two years and create 2,000 more permanent jobs. Amazon even had a quote from David Cameron, the prime minister, in its September press release. “This is great news, not only for those individuals who will find work, but for the UK economy,” he said.

via Amazon unpacked – FT.com.

Big Unemployment, the New Normal?

Posted in economics, employment, macroeconomics, Policy Issues, Regulation, Taxation by ittecon on July 9, 2013

I tried to respond to a post by Don Peppers responding to this article, but LinkedIn limits the character count. I quote Don’s post here for context.

It’s common knowledge that LESS government, LESS regulation, and LOWER marginal tax rates will all improve employment. Unfortunately, the politics of envy is irresistible to some, and there are very few politicians on either side of the aisle who will vote for less of anything related to the government.

It may be common knowledge that less of these things might increase employment, but this favours a local maxima at the expense of a global maxima. It is the typical short-term benefit with a long-term detriment. Still, this argument and its subarguments are specious. I won’t even give any more attention to the dubious official unemployment figure definition and methodology.

Less government is a vague term. What government? Fewer dog-catchers? Interesting how, ad reductio, this becomes an argument for anarchy.

As for regulations, business favours regulations that shield it from the public and markets; intellectual property “rights” come to the top of my mind. Government (or a quasi-government acting entity) are necessary so as not to devolve into a situation where warlords rule. Afghanistan comes to mind. I could imagine a football match with no rules or regulations. Even rugby and UFC have rules, as do wars.

In economic terms, the lower marginal taxes argument is patently false (without even delving into marginal verse effective territory). Laffer’s concept is not false in and of itself, but it fails on two accounts. First, we can agree that at some point lowering marginal tax rates will create positive incentives, but it doesn’t follow this is true at all levels. Empirically, we can easily determine that we are below that point. On a practical level, this not only means that a reduction with not have positive effects; there will be negative effects. Second, the primary driver to hiring is demand for products or services (or at least the prospect thereof). A marginal tax rate of zero has no impact if no one is purchasing what I am offering.

Whats Wrong With the U.S. Job Market?

Posted in economics, employment, macroeconomics by ittecon on May 10, 2013

The breakdown of the labor market can be blamed on either supply or demand. Those who argue that the supply of labor is the main problem say that many Americans simply aren’t qualified for the jobs available. On May 7, the BLS reported that there were more than 3.8 million job openings in the U.S. at the end of March—at a time when more than 11 million people were looking for work.

via Whats Wrong With the U.S. Job Market? – Businessweek.

Is Capitalism Dying?

Posted in economics, externalities, Policy Issues, Regulation by ittecon on May 8, 2013

It’as not very often that I agree with a large part of an article published by Forbes, but here is one.

Capitalism has been the dominant economic system in the Western world for, give or take, 400 years. And in that virtual eye blink in the grander scheme of things it has produced more wealth than all the prior economic systems put together.

via Is Capitalism Dying? – Forbes.

The Stock Market Is Booming

Posted in economics by ittecon on May 8, 2013
Fix me a latté

Job Creators

Inequality: The Elephant in the Room

Posted in economics, Policy Issues, progressive taxation, Taxation by ittecon on April 30, 2013

Robert Reich discusses the elephant in the room and advocates Keynesian economics over supply-side austerity.

Did The Government Cause Our Long-Term Unemployment Problem?

Posted in economics by ittecon on April 24, 2013

I thought not.

Regulations and taxes do make it hard to grow a business and create new jobs, a point I made in my last post.  And extended unemployment benefits do give people an incentive to stay home instead of finding a job.  Indeed, I know people who have done just that.  One of them wrote a novel that sold for a bunch of money and earned back all the benefits theyd collected, and then some.  The rest of them basically sat around and did nothing until their benefits ran out, and then found another job.

via Did The Government Cause Our Long-Term Unemployment Problem? – The Daily Beast.