Initial unemployment claims plunge 27,000 to below 400,000, lowest level since April

The funny thing is, economies are dynamic and policies tend to change, as unpredictable results arise.

Nobody can predict where the economy will be in two years, although we can make educated guesses, which is what Bernake is doing.

 

True, but what does this tell us about "memes"?

 

I've only found a handful of libertarian wannabes that understand the Austrian School, using instead low brow site to peddle an ideology that ultimately harms the individual. Educating them the basics might be a significant employment creator!

 

fine.....and if interest rates do start to rise it will show up in the bond market!

 

its quite simple actually....a government should run very similar to a household.....spend within your means and save for a rainy day! And all this nonsence about Adam Smith's invisible hand and Keynes's deficit spending are just that.....nonsence!

 

the proof is in the pudding.....just look at the recession of 1921!

 

A ridiculous statement that only shows you do not understand that government is the key economic agent in capitalism.

It is of course important for you to argue all economic analysis is nonsense. Your ideology demands it

 

government is not the key.....business and capital are the key! And I think its your ideology that demands it not mine!

 

You can ignore reality. Indeed its a key requirement for libertarian wannabes.

Government is used to ensure business flourishes and economic rent is reproduced.

I bother to peruse the political economy needed to understand the characteristics of capitalism. I don't try and play pretend in order to keep my ideology 'safe'.

 

From the top linked article:

'NEW YORK (CNNMoney) -- The number of Americans filing for their first week of unemployment benefits fell last week to the lowest level in nearly six months, possibly signaling slight improvement in the job market.'

So good news for a week or two (assuming they don't revise the numbers downwards in a month or two).


Now here is some not-so-good news released on Friday from the government:

Personal income and personal savings were both down in August.

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm


What that obviously means (taking the inflation rate into account) is that as of the last available data, Americans are going more into debt - despite the fact that their income is shrinking while inflation is growing.

http://www.usinflationcalculator.com/inflation/historical-inflation-rates/

And for an economy that is 60-70% based on consumer spending...that ain't good news.

Actually, that ain't good news...period.

 

however, the markets are forward looking and are suggesting tough times ahead!

 

governments only have a printing press,,,,,,sure they can create inflation...and for regulation? The more regulatioin the more it stifles growth and job creation!

 

Wrong again, as shown by the employment creation through minimum wages. You have to adopt a particularly naive view over market perfection to suggest otherwise

 

wrong....very high minimum wages discourages employment as it makes return on capital difficult for the would be employer!

 

You twin innocence of supply and demand with a deliberate desire to ignore the empirical evidence. Standard result for those that ignore market imperfections in order to peddle an ideology inconsistent with capitalist result

 

so you are suggesting that even at a fast food place you can find it economical to pay your employees 20 dollars an hour?

 

I'm stating that market imperfections exist and, if you bother to understand supply & demand, that means the minimum wage can increase both wages and employment levels. That makes a mockery of your original comment

 

now you are talking something totally different.....yes if you increase productivity then you can pay your employees more as it would take fewer man hours to produce the same widget as it did before. But this is market forces at work, not a government mandated minimum wage law!

 

No, I've been constant in referring to how your position is reliant on a ridiculous notion of market perfection

Whilst it is true that minimum wages are found to increase productivity levels, you're replying to a remark that just referred to supply & demand (and how the minimum wage creates exchange opportunity). You've made another basic error!

See above! You're wrong on two fronts. First, the minimum wage is found to be crucial for the exhaustion of mutually beneficial exchange. Second, it creates productivity gains in itself. You're digging a bigger hole for yourself, as we see just how wrong your original comment was

 

let me ask you something.....suppose you owned a coffee shop that is opened 7 days a week its not a very busy place, just busy enough to pay the bills and a small profit for yourself. You don't want to work 7 days a week as it gives you no time for liesure nor time to do personal things, yet you also cant afford the minimum wage when you price in all the hidden costs like vacation pay etc. What would yoy do?

 

Either find a way to increase your revenue or sell the joint if working 7 days a week is not worth it.

 

a lower minimum wage especially for part time students would also help!

 

If you goal is to maximize your profits, a lower minimum wage in that scenario does not help you to your goal. Paying a lower wage "should" have a negative impact on your productivity for the day you take off.

 

all I am saying is the higher the wage the lower the incentive to hire somebody!

 

Lets rephrase that: The higher the wage for, the lower the incentive to employ low skilled labor!

hint: Low skilled labor is not marginally profitable (relatively speaking).