Why Capitalism is Awesome.
The U.S. Chamber of Commerce Foundation reads the Internet so that you don’t have to, sharing a short list of curated blog posts for your Friday reading.
But the true genius of the market economy isn't that it produces prominent, highly publicized goods to inspire retail queues, or the medical breakthroughs that make the nightly news. No, the genius of capitalism is found in the tiny things -- the things that nobody notices.
Want higher wages for struggling families? Then allow more building in high-wage areas.
The U.S. economy appears to be transitioning to a subscription-based model, “in which firms will focus less on selling things, and more on gaining recurring customers.”
The U.S. government has $70 trillion in off-balance-sheet liabilities, translating into a 500% debt-to-GDP ratio.
Seventy-seven percent of employers are using social media to recruit new employees, with LinkedIn as the biggest driver.
Uncertainty appears to be on the wane in the economy, down to its lowest level since 2008. Yet, as Jim Tankersly wonders, whatever happened to the job growth we thought would result from an increase in certainty? Tankersly tries to make the point that uncertainty doesn’t appear to have as much influence on job creation as many businesses make it out to be, but I think that’s going a bit too far.
- The Index has always been a leading indicator, so perhaps we’re too early to see the effects of a decline in uncertainty.
- The Index is much better at detailing the effects of uncertainty shocks (which we haven’t really faced since the debt limit fight) on the stock market (which is clearly not what Tankersly is looking at).
- We live in a complex economy where a number of other factors are at play; the Uncertainty Index is one imperfect measurement of one important factor in the broader economy.
- What Tankersly should have argued was that businesses continue to face significant demand uncertainty; he would have at least been on stronger empirical grounds then.
Regardless, I can guarantee you that the Index’s creators will still be watching the labor market with great interest to see how it tracks uncertainty going forward.