This graph displays data collected by the Philadelphia Fed on Factors influencing hiring. It is not uncertainty about the Obama administration's policies. Its all about keeping costs down in an environment of weak demand. Of course, demand is weak because employment and household income are low. The loss of household wealth from the bursting of the housing bubble is also a factor. This is a vicious cycle that is not easy to remedy without government taking some actions to stimulate demand.
Friday, January 20, 2012
Federal Reserve Study On Factors Affecting Hiring
This graph displays data collected by the Philadelphia Fed on Factors influencing hiring. It is not uncertainty about the Obama administration's policies. Its all about keeping costs down in an environment of weak demand. Of course, demand is weak because employment and household income are low. The loss of household wealth from the bursting of the housing bubble is also a factor. This is a vicious cycle that is not easy to remedy without government taking some actions to stimulate demand.
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