Right, trade helps the economy not just those working in it: It’s not unusual for profits to recover before wages, especially given the increase in global trade, wherein multinationals can sell to wherever the growth is, while relatively immobile labor has to wait for domestic demand to return. But based on the official dating of the expansion, as of this January it’s 55 months old, solidly middle-aged given that the average length of the last five expansions is 76 months and theres no reducing inequality without reducing unemployment, which in the present economy means creating more public sector jobs: The economist Lawrence Katz, an important thinker is this debate because of his deep contributions to the literature on education as a wage determinant, agrees: “The only moments we’ve had of broadly shared prosperity have been in tight labor markets.” So what is Obama doing on these two fronts? Negotiating more trade agreements and cutting the federal deficit. Over to you SOTU
Posted on: Tue, 28 Jan 2014 13:19:14 +0000
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