Sunday, December 26, 2010

Labor is confusing

What determines the amount of work we have to do? Mainly growth, but a whole bunch of other stuff which is what confuses us.  The labor function does not seem well defined by the economy, and it seems to me that as the economy settles into a corridor or growth, there remains a whole lot of factors that may determine the labor function.  Hence, I make little attempt to understand it.

One thing sticks out, from 1985 until the crash we took on more debt and worked more. We bet on some future that wasn't quite right. I suspect the fixed government entitlement streams begin to effect labor price flexibility.

No comments: