Situation :Teenage unemployment rate increased from 13.2% in 2000 to 28 % in 2011 . For much of the past 60 years, the proportion of 16-to-19-year-olds who held jobs — either part or full time — was around 40%. In fact, in 2000 it was a relatively high 45%. In all, nearly 7.3 million teens were getting a regular paycheck..
Facts:Older workers are not exiting the workforce and in some situations are getting back in the workforce after a decade of hiatus The retail and construction sectors, which are usually key employers of young workers, have been among the hardest hit.
Potential outcome The only plus of this grim circumstances is teenage students are staying back in school in fact the school enrollment rate for 16-to-19-year-olds has risen to 83%, up from 78% in the mid-1990s which in turn can lead us to believe that we might have an increase in skilled labor force n coming years
Thursday, April 14, 2011
Thursday, March 3, 2011
Quantitative Easing
Direct injections of money into the economy can have a number of effects. The sellers of the assets have more money so may go out and spend it. That will help to boost growth. Or like in reality they may buy other assets instead, such as shares (share buy back policies) or company bonds which we have seen in past, the corporations have money ,they are already sitting on a lot of cash.
By buying MBS,AAA Corporate debt, long term treasury securities the FED’s anticipation of reenergizing economic activities needs to be closely watched
By buying MBS,AAA Corporate debt, long term treasury securities the FED’s anticipation of reenergizing economic activities needs to be closely watched
Thursday, February 10, 2011
Freshwater Vs Saltwater Economists
http://www.nytimes.com/1988/07/23/business/fresh-water-economists-gain.html
While reading this article , I was remembering the East Coast–West Coast hip hop rivalry which resonated at some level with the cotemporary different schools of thoughts of Economists pointed out in this article.
By far the biggest difference between the 2 school of thoughts is the explanation of recessions and associated issues like persistence of recessions.
The equilibrium model from the freshwater economists advocate that economy is self stabilizing and will return to equilibrium in its due course and that there is inherently no need of any policy interventions to achieve full employment
The general malaise around economic conditions cannot be quantified by the hypothesis of equilibrium model and we have to be mindful that any economic model needs calibration and fine tuning
While reading this article , I was remembering the East Coast–West Coast hip hop rivalry which resonated at some level with the cotemporary different schools of thoughts of Economists pointed out in this article.
By far the biggest difference between the 2 school of thoughts is the explanation of recessions and associated issues like persistence of recessions.
The equilibrium model from the freshwater economists advocate that economy is self stabilizing and will return to equilibrium in its due course and that there is inherently no need of any policy interventions to achieve full employment
The general malaise around economic conditions cannot be quantified by the hypothesis of equilibrium model and we have to be mindful that any economic model needs calibration and fine tuning
Subscribe to:
Posts (Atom)