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|User Info||Spare Me The Outrage About DACA; entered at 2017-09-05 15:24:02|
Registered: 2007-07-05 N 47.72/ W 122.55
There is a very high correlation with labor surplus and the BEGINNING of a recession. Obviously, once the recession is on, labor surplus grows and deepens it.|
There is the concept of "margin" in business. As our host has pointed out several times, margin compression is an early harbinger of a down cycle in business. The reasons are obvious. Businesses lack the ability to expand or reinvest. Soon, they are in survival mode, rather than growth mode.
Same concept applies to labor. If people are living hand-to-mouth, they have no margin to speak of. They get into survival mode and spending contracts. This hits businesses in the way I described in the previous paragraph.
There is a reason that the 1950s and 1960s were very prosperous and you could raise a middle class family as a high school drop out, and only working with your hands.
There is a reason that Europe didn't have any material improvement for almost 1000 years. There was a tremendous labor surplus after the fall of the Western Empire. They didn't recover until 30-40% of the population died in a very short time and cured the labor surplus. One decade after the Black Death???
Renaissance, and a centuries long expansion of European dominance.
That is going head long into a massive labor surplus caused by Third World migration.
Draw your own conclusions.