Not the same, literally, but the same principle at work. What people seem to forget is that Europe has tried to guarantee work. That’s why their labor laws are so rigid. And this has caused much higher unemployment than elsewhere, most severaly affecting the young who are, in many different ways, locked out.
The cause of increasing youth unemployment is not guarantee of work but failure to expand businesses. The reason why the latter took place is because investors chose to engage in financial speculation rather than to earn from increased production and consumption of goods. That’s why the notional value of the global unregulated derivatives market alone is twenty times the size of the global economy.
“Top Derivatives Expert Estimates Size of the Global Derivatives Market at $1,200 Trillion Dollars … 20 Times Larger than the Global Economy”
washingtonsblog.com/2012/05/top-derivatives-expert-finally-gives-a-credible-estimate-of-the-size-of-the-global-derivatives-market.html
The 2008 crash, which is still causing havoc today, started with only a fraction of that global market.
More generally, politicians have been promising to eliminate risk from life in many different ways including, as we are discussing here, the risk of recession. Far from being greedy, the federal reserve is doing what it think it is supposed to do: pump up the economy and prevent economic downturn. Among the perverse effects is growing inequality due to rising asset prices.
You are not countering my arguments. If any, you are only reinforcing what I said.
The absolute absurdity of your position is this: you claim that the government is a captive of the ‘financil elite’ and then you demand more power for the government to reguate business and then you are shocked, shocked, that you get crony capitalism.
I did not argue that the government will succeed in regulating businesses.
Anyone who expected emplyers to hire because they got bailouts is a fool. Employers hire when the value of labor is greater than the cost.
But who will buy the products and services sold by companies if not the same workers?
Interestingly, many make the exact opposite claim, that poverty destroys families.
Poverty can destroy families for several reasons, but what drives the points you raised earlier, such as entitlement and population aging, is prosperity, and that accelerates thanks to free market capitalism.
However, the same type of economy can also lead to financial speculation, which is what led to the 2008 crash, and now causing greater unemployment, among other problems.
Governments cannot regulate if they could not do so from the start, which very much explains why increased deregulation led to the 2008 crash.
Looming behind this problem are two more significant ones: a resource crunch and environmental damage coupled with global warming. Pope Francis has spoken about the latter. I think the former will be actively discussed during the next few years, especially when it comes to oil.
If all unemplyment grows then speicfic unemployment will grow. But nobody has shown, much less proven, that any recession causes youth unemployment to diverge. We have had many recession and depressions throughout history and none has ever had that effect.
Recession does not cause youth unemployment but makes it grow.
The reason why this recession is different from the past is that it stems from a global unregulated derivatives market that is huge.
But there is historical precedence for this. As recently as the 1950s black youth unemployment was lower than white youth unemployment. Then government decided to be compassionate by raising the minum wage and providing generous welfare. Needless to say, black youth unemployment skyrocketed so that today few people can imagine that it was ever otherwise.
We can see this as historical precedence only if we can assume that the world labor group consists of black and white youths working in the same industries.
Please provide evidence, similar to what the ILO and others have said, to support your claims about minimum wage, demographics, etc.
