Adroitly, President Trump has optimized outcomes for the American Worker. His is a labor market like no other.
Long overdue in the U.S., a labor market is one in which firms compete for workers, rather than workers competing for jobs.
“For the first time since data began to be collected in 2000, there are more job openings than there are unemployed workers.” By the Economist’s telling (Jul 12th 2018), “Fully 5.8 million more Americans are in work than in December of 2015.”
Best of all, workers are happier than they’ve been for a long time.
Not so business. For American business, it’s never enough.
Big or small, business is focused on elephantine-like expansion.
Big and small, business is nattering about labor shortages: “Ninety percent of small businesses which are hiring or trying to hire workers report that there are few or no qualified applicants, according to the National Federation of Independent Business.”
With blaring headlines, the megaphones in the financial press are amplifying a message of dissatisfaction:
“The shortage is reaching a ‘critical point’ … A lack of applicants for blue-collar jobs such as trucking and construction has received particular scrutiny, as have states like Iowa where the unemployment rate is especially low (it is just 2.7 percent in the Hawkeye state).”
August 31 saw President Trump sign an executive order meant to further boost small businesses. These will be permitted “to band together to offer 401(k)s.”
Again, nice, but not enough. It never is. A businessman present piped up about “a very tight labor market … causing us a little bit of a problem.”
Contrast this gimme-more-forever-more attitude, with the patriotic perspective of your average Trump supporter: “I’m willing to take my lumps for the good of the country,” a farmer told broadcaster Laura Ingraham. “The Scottish in me says to the death.”
Look, a labor market allows wages to rise and productivity to grow, for unprofitable firms will soon fold when they find they can’t pay enough to attract workers. Scarce resources—labor and capital—are then “put to better use.” …