Saturday, April 3, 2010

The state of the labor market

And remember that “employment” counts those involuntarily working part-time jobs and those imputed to be “self-employed.”  See Mish or Tyler Durden for demolition of the current unemployment statistics.

image

The U-6 measure of un- and underemployment hovers around 17 percent.  Given the extreme inequality of the income distribution, this represents a sizeable and growing underclass.  How much fun it will be to live in the United States over the next decade will be largely determined by how the authorities choose to deal with this segment.

The Obama administration is being vilified by some for trying to address a mounting humanitarian crisis here at home, much as Bill and Melinda Gates are being vilified by some on the left for “racist” eugenic ambitions for trying to improve the health of the bottom two billion humans (which, in turn, will predictably lead to lower infant mortality and lower reproduction rates). 

The ruling class loves the current nasty political environment because it keeps their marginal tax rates low.  My read is that the powers that be are aware the economy is collapsing and are making their last greedy grab for wealth to set themselves and their families up during the depression that will unfold in a few years.

Marginal tax rates on incomes over $1 million should be about 75 percent in the current fiscal environment. 

No comments:

Post a Comment