Also, found an interesting new economic website called The Decembrist. I found this quote from the page:
In December, the CEO of a California-based high tech firm told me that "there is no amount of overtime that we will not pay, there is no level of temporary services that we will not use, there is no level of outsourcing or offshoring that we will not do, in order to prevent us from having to hire one new, permanent worker in the U.S." As I travel around the country, meeting with business leaders, I hear similar, though less succinct thoughts in almost every sector and every part of the country. U.S. wages, health care, and other benefit costs have gotten so high -- and the press by investors for high stock prices is so great -- that the premium is on wringing every last bit of work out of as few employees as possible, to do anything but incur the costs of adding permanent employees. [emphasis added]
It is strange that increases in productivity are as high as they are, and yet we're not seeing substantial job growth. This writer says that unless we see an increase in real aggregate demand, there is no incentive for firms to hire more people. He gives examples of how he sees increases in demand coming. A lot to sort through, for me, though.
Also decided to add a sidebar devoted just to economists' weblogs.
Posted by scott at March 15, 2004 10:19 AM | TrackBack