Economists Admit to Being Clueless about Jobs

http://www.cnbc.com/id/43711926

The above-linked article just appeared on CNBC this afternoon.  It seems that economists are admitting to being flummoxed by the incredibly bad June employment report when all of them were expecting some halfway decent job growth. 

I posted a comment in reply to the article at about 1:21 PM, if you want to find it.  But to make it easier, here was my reply:

Economists are clueless about jobs because economists steadfastly refuse to consider the most dominant parameter affecting our economy today – population growth. Since the seeming failure of Malthus’s economic theory about population in the 1800s, anyone who dares to suggest that overpopulation could present a problem for the economy is instantly dismissed as a “Malthsian.”
 
That’s a pity because if economists would once again open their eyes to the full ramifications of population growth and not just the strain on resources and stress on the environment, they may discover very serious consequences for the economy itself in the form of falling per capita consumption and rising unemployment, and the role that population density disparities play in driving global trade imbalances.

Ever-worsening unemployment, destructive trade imbalances and the global debt problem – these are no mystery. They’re completely predictable when you understand the relationship between excessive population densities and low per capita consumption.

Pete Murphy
Author, “Five Short Blasts”

So, “economists,” what are you going to do about it?  Cling to your incomplete economic models or open your minds to the one parameter you refuse to consider in your economic equations?  Sadly, I think I know what their reply will be.  “Malthusian.”
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: