Saturday, April 10, 2010

Jobless Recovery: Just What The Doctor Ordered

The web is alive with stories about the green shoots in the economy and the Dow's momentary vault above 11,000. And, oh yes, the inevitable tsk-tsking about how unemployment remains give or take around 10 percent. But what if the recover is coming about not in spite but because of the 10-percent unemployment rate? What if the result of the late meltdown is precisely to cull the workforce, as you would cull a buffalo herd, getting rid of the weaklings so the rest of the herd can move faster?

Don't misunderstand, I'm not remotely pleased at the thought of such a result. But one way to tart up the bottom line is to cut the wage bill. People have been talking for a couple of years now about how some of those jobs are never coming back. And what if there is simply nothing to take their place?

[On buffalo herds and how beer drinking makes you smarter, go here.]

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