Labor force participation

Labor Force Participation Rate via BLS

Dropping because economies of scale has partitioned out those jobs that cannot justify the debt cost. Bad news for Congress and the default risk, right?   Citizens, the debt maturity of Congress is getting shorter.  The Keynesian solutions do not kick debt into the next generation any more, they get kick it into next year's job market. Debt service costs may be low, but they grow faster than current producivity, so the curve steepends, less variability, shorter chains,  greater economies of scale, fewer wage bands, fewer jobs can justify debt service.

Retail velocity is dropping to 1995 levels in order to manage the skew caused by Washington DC.   A longer look tells me that labor participation rates track somewhat with retail velocity. We have about three stable M1 velocity rates avaiable, with no stable intermediate points. We may not stop at 1995, maybe 1982 is the stop, a retrace all the way back to the Dead Communist.