Labor

Submitted by Kessler Companies

Output Gap Update - Q1 2016

Initial jobless claims continue to hover at 43 year lows, suggesting that everything is awesome in America - just ask President Obama. So why is US GDP not growing at 3.0%-plus as the 'models' would suggest? Simple - because job 'quality' matters and the chart below should slap that into the face of fiction-peddlers across the nation...

Surging minimum-wage employment amid plunging manufacturing jobs - now that is a legacy to be proud of.

Submitted by Adam Smith via PeakProsperity.com,

Students of Austrian business cycle theory are familiar with the term malinvestment. A malinvestment is any poor use of resources or capital, commonly made in response to bad policy (usually artificially low interest rates and/or unsustainable increases in the monetary supply). The dot-com bubble that popped in 2001? The housing bubble that similarly burst in 2008? Those were classic examples of malinvestment.

Millennials have now overtaken baby boomers as America's largest living generation according to Pew Research. Millennials as defined by Pew as ages 18-34 now number 75.4 million, slightly edging out Baby Boomers (ages 51-69) numbering 74.9 million. 

Millennials also have a few other things going for them, however not in a good way.

As the WSJ reports, Millennials in New York City are earning about 20% less than the previous generation of workers, and they are absolutely drowning in $14 billion in debt.