Liberal economist Dean Baker says American economy is no where near full employment, despite dropping unemployment rate. He said too much of the decline is due to people dropping out of the labor force and those dropouts are not just retiring baby boomers. He writes that it is natural for economies to grow and expand, and he says that before the Great Recession of 2007, the expectation was for much more growth in both the economy and wages than what has actually occurred. As a result, he does not see wage growth occurring until 2016, assuming that the economy keeps adding 240,000 jobs a month. Full explanation here:
Posted on: Fri, 16 Jan 2015 00:02:11 +0000