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Employment Dropouts: American Men

Written by Gary North on May 7, 2012

For over half a century, American men have been dropping out of the job market. As a percentage of the population, men have fallen. This is a long-term trend.

This change in men’s work patterns is partially caused by retirement. Retired people are out of the labor force. This is normal. So, the long decline is heavily influenced by an increased number of retired men. But the sharp declines during recessions are not. When the recession ends, younger men go back to work. Retired men do not.

Not this time.

Beginning in 2008, the ratio had the sharpest and longest decline. There has been no rebound.

This indicates that the U.S. economy has entered a new phase. It will be marked by unemployed men and men dropping out of the labor force.

When someone ceases looking for work, he is no longer counted as being in the labor force. When this happens, he is no longer officially counted as being unemployed. An unemployed person is defined as someone who has no job and who is looking for work. When he stops looking for work, he is no longer counted. So, the unemployment rate officially goes down.

The labor market is not recovering. The Obama stimulus of $787 billion has failed to create jobs. The Federal Reserve’s expansion of the monetary base from $900 million to $2.9 trillion has failed. Keynesianism has failed.

The #1 Keynesian spokesman among economists in America, Paul Krugman, keeps calling for more deficits (stimulus) and more Federal Reserve money creation. In short, he wants more of the same. In his May 3, 2012 column, he wrote:

Which brings us to the question of what it will take to end this depression we’re in.

Many pundits assert that the U.S. economy has big structural problems that will prevent any quick recovery. All the evidence, however, points to a simple lack of demand, which could and should be cured very quickly through a combination of fiscal and monetary stimulus.

Note that he calls this economy a depression. He does not regard it as “business as usual.”

The federal government is running deficits over $1 trillion a year. This is surely a Keynesian stimulus. The monetary base has tripled — the greatest increase in peacetime American history. This is surely a stimulus.

What will it take to meet Krugman’s standards? A federal bankruptcy and hyperinflation. Then he will blame Republicans.

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2 thoughts on “Employment Dropouts: American Men

  1. John G. says:

    I am keeping me and my capital on the sideline, as I have since early ’09. I have no idea what is going to happen in our political and economic system, short/medium term. Hence, we have easy mobility — we rent and our money is overseas — for when we get a better read on what is going to happen short/medium term.

    I hope the rumors of upcoming mass arrests by the military/U.S. Marshalls of Fedsters, banksters, and their political and military puppets are true.

    Until then, I sit on the sideline, watching and waiting.

  2. Men were kick out of the workforce, congress in the Civil Rights Bill of 1964, gave women minority status,and congress passed over 400 laws empowering women, 0 laws for men. If you were to read Antonio Gramsci's " Attack on the Family" written 1921, Gramsci was an Italian communist, he said to take over America, first take over the courts, and removed the man from the family. This country has been following his writhing to a tee. This country was built by men, and they are using women to tear it down. Women after getting married and having a baby left the workforce an went home to be a mother. This all change in 1972, mothers started staying in the workforce after having a baby, she started buy her own vehicle , and the divorce rate went out of site. Men were force to compete with a women for a job, corporation were force to use affirmative action and quotas. A white male is the only non-minority in the United States.