At least more are recognizing our growing problem … William Galston: Unless men re-enter the job market, prospects for vigorous growth in the labor force are dim.
Participation in the workforce is falling, the pace of job creation is anemic, and long-term unemployment remains stubbornly high. Many newly created jobs pay less than those that disappeared during the Great Recession, so real wages are stagnating, and median household income is no higher than it was a quarter of a century ago.
Besides the rest, now there is this …
Defending President Barack Obama’s much-maligned health care overhaul in Congress, his top health official was confronted Wednesday with a government memo raising new security concerns about the trouble-prone website that consumers are using to enroll.
Intel decides to build ARM chips … Low power is the issue driving this.
“A liquidity trap is a situation described in Keynesian economics in which injections of cash into the private banking system by a central bank fail to lower interest rates and hence fail to stimulate economic growth. A liquidity trap is caused when people hoard cash because they expect an adverse event such as deflation, insufficient aggregate demand, or war.
Signature characteristics of a liquidity trap are short-term interest rates that are near zero and fluctuations in the monetary base that fail to translate into fluctuations in the general price levels.”
Importantly, this evidence is mounting that the Federal Reserve has now become trapped within this dynamic.
The important point is that, for the first time that we are aware of, someone (of apparent note to the status quo) has verbally stated that we are indeed caught within a liquidity trap. This has been a point that has been vigorously opposed by supporters of the Federal Reserve actions.