June 19, 2018

Monopsony: The secret word as to why the jobs aren't there

Know how we are allegedly at something like full employment? How we're allegedly at more jobs than available workers?

Well, other than declining labor force participation still not totally rebounded from the Great Recession, other than age discrimination against an aging workforce, there's also the issue of the cost of labor being a factor

This is a good starting point. It explains why the unemployment rate is virtually meaningless, per this internal link. It's "shocking" that an Obamiac economic official is among the more vocal critics. That second link notes that labor force participation is also keeping wages lower than you and I would like, as well as stifling new job creation.

From there, go to Paul Krugman on monopsony, the quieter cousin of monopoly. Monopsony, the quieter cousin of monopoly, is explained here in more detail.

There's also my contribution, which notes that employers, even though they know that single-payer national health care would be cheaper for them than private health insurance, like how "bennies" continue to keep employees enserfed.

Your seven-day daily newspaper or magazine business columnist, if he or she wants to be relevant on why you're not seeing a lot of new jobs you'd like, needs to take this into account.

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