http://www.nakedcapitalism.com/2008/05/job-market-for-new-college-grads-worse.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.nakedcapitalism.com/2008/05/job-market-for-new-college-grads-worse.html#comment-8035 bobo7874 Wed, 14 May 2008 10:00:00 +0000 http://www.nakedcapitalism.com/2008/05/job-market-for-new-college-grads-worse-than-2001/#comment-8035 For a while now, people have argued your hypothesis about wage arbitrage through trade/immigration limiting wage inflation. The analysis seems rather limited though because it doesn't seem to address the fact that trade/immigration have waxed and waned over time. An obvious example is the globalism that ended in 1929, and led to a nationalist backlash. I won't assume globalism can't weaken, until someone presents a thoughtful explanation of why. For a while now, people have argued your hypothesis about wage arbitrage through trade/immigration limiting wage inflation. The analysis seems rather limited though because it doesn’t seem to address the fact that trade/immigration have waxed and waned over time. An obvious example is the globalism that ended in 1929, and led to a nationalist backlash. I won’t assume globalism can’t weaken, until someone presents a thoughtful explanation of why.

]]> http://www.nakedcapitalism.com/2008/05/job-market-for-new-college-grads-worse.html#comment-8013 S Wed, 14 May 2008 01:54:00 +0000 http://www.nakedcapitalism.com/2008/05/job-market-for-new-college-grads-worse-than-2001/#comment-8013 one of the more insidious things about input cost inflation is that it makes the only tue variable cost labor. So while the wage arbitrage is ongoing and slowly creeping into the white collar ranks, it is the pressure on companies to show "growth" that forces the continued squeeze. Without the leverage recap alchemy of the past few years, employees should view themselves as having a target on thier back. Perverse, but bankers/consumer products companies were excited about inflation as they would recapture pricing power. That statement says it all about what they think about labor. There will be no wage spiral. one of the more insidious things about input cost inflation is that it makes the only tue variable cost labor. So while the wage arbitrage is ongoing and slowly creeping into the white collar ranks, it is the pressure on companies to show “growth” that forces the continued squeeze. Without the leverage recap alchemy of the past few years, employees should view themselves as having a target on thier back. Perverse, but bankers/consumer products companies were excited about inflation as they would recapture pricing power. That statement says it all about what they think about labor. There will be no wage spiral.

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