Our current high unemployment rates are not due to lack of jobs, but, rather, to the fact that our employed workforce is too large, thanks, in part, to the Baby Boomer generation that is not ready to retire.
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In attempting to reduce high unemployment rates, the conventional wisdom is that unemployment is caused by a lack of jobs. That makes sense, until you analyze the size of the employed workforce. The reality is, if you reduce the size of the employed workforce, you will effectively decrease the unemployment rate. It is a fact that workers who drop out of the workforce will decrease unemployment. |
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