Drudge Retort: The Other Side of the News
Tuesday, July 10, 2018

They say "labor shortage" like it's a bad thing. "America's labor shortage is approaching epidemic proportions, and it could be employers who end up paying," CNBC reported this week. That was before yet another monthly jobs report showing solid growth in jobs and wages. I always find this framing to be backward.

Advertisement

Advertisement

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Economically, the recent period of time that this mot corresponds to is 1995-1996.

Unemployment was really low in 1996. A close friend managed a hotel in a large southern city. We both had graduated in 1994. He was having a hard time finding and keeping minimum wage help to staff the hotel because job opportunities were so good.

That economy is what secured the re-election of Bill Clinton and House and Senate incumbents.

There was also a minimum wage increase in 1996 because the economy was doing so well.

#1 | Posted by jamesgelliott at 2018-07-10 10:08 AM | Reply


... likelier that companies will decide they must pay higher wages to attract talent. ...

In general, the economic laws of supply and demand apply.

To a point.

That economic law works best in a viable marketplace.

If no talent exists, however, as in a labor shortage, then no amount higher wages will attract talent that does not exist.

That's is the looming problem here.

How do companies attract talent that does not exist? Corollary: how are those higher wages going to be paid?

Many companies have already committed to using the tax cut benefits to transfer the money to their wealthy stockholders via dividends or stock buybacks. Will the companies have to raise prices in order to pay the nearly non-existent talent?

#2 | Posted by LampLighter at 2018-07-10 10:11 AM | Reply

Mexico will be the beneficiary of this, Trump will be confronted by corporate honchos and cave in on tariffs.

#3 | Posted by danni at 2018-07-10 10:14 AM | Reply

"Will the companies have to raise prices in order to pay the nearly non-existent talent?"

Have to raise prices? Record profits indicate they have plenty of margin to play with.

#4 | Posted by danni at 2018-07-10 10:15 AM | Reply


@#4 ... Have to raise prices? Record profits indicate they have plenty of margin to play with. ...

OK, point taken.

Will the companies have to raise prices in order to pay the nearly non-existent talent?

- should be -

Will the companies opt raise prices, or continue to transfer the record profits to their wealthy shareholders, in order to pay for the nearly non-existent talent?

#5 | Posted by LampLighter at 2018-07-10 10:25 AM | Reply

"Many companies have already committed to using the tax cut benefits to transfer the money to their wealthy stockholders via dividends or stock buybacks."

So you are ignoring all the companies who have given raises and bonuses to employees. Dividends and stock buy backs are one time events that happen in a suddenly expanding economy. Continued economic growth puts pressure on income growth. We should hope for a continuation of the current economic growth in order to really help the American worker.

Another fringe benefit, especially for Democrats, of continued economic growth is the development of more jobs that "Americans just don't want to do" This will aide them in their promotion of illegal immigration.

#6 | Posted by jamesgelliott at 2018-07-10 10:29 AM | Reply

"Will the companies have to raise prices in order to pay the nearly non-existent talent?" - LAMPLIGHTER

"Have to raise prices? Record profits indicate they have plenty of margin to play with." - Danni

That's the advantage of capitalism over socialism.

#7 | Posted by jamesgelliott at 2018-07-10 10:33 AM | Reply

"in order to pay for the nearly non-existent talent?"

No talent equals no profit. Waged will be forced upward

#8 | Posted by jamesgelliott at 2018-07-10 10:34 AM | Reply

@#6 ... So you are ignoring all the companies who have given raises and bonuses to employees. ...

Nope, not ignoring them, just realizing them for what the represent, a minority of the companies. The few companies that made headlines around the time of the tax cut did exactly that --- made headlines. If only the number of companies that gave permanent raises as a result of the tax cut were as numerous as the number of times those headlines have been cited as a reason why the tax cuts are good.

... Dividends and stock buy backs are one time events that happen in a suddenly expanding economy. ...

No and yes.

Stock buybacks are one-time events, usually done when a company cannot think of anything better to spend (or invest) the money on.

Dividends are ongoing on a quarterly basis. Once a company raises its quarterly dividends, to reduce that quarterly dividend level is taken as a negative sign, i.e., that the company is doing poorly.

I'm not saying that a "labor shortage" is inherently bad, indeed, I applaud full employment. However, I am also saying is that one needs to be careful what you ask for.

You can go from "labor shortage" to "out of control inflation" quite quickly.

#9 | Posted by LampLighter at 2018-07-10 10:44 AM | Reply


@#8 ... No talent equals no profit. ...

That's a nice bumper sticker, but little else.

Companies already have talent. They may raise wages to retain the talent they already have, hoping they won't go to a different company. But that does not bring new people into employment.

If there is a labor shortage, that means that there is not enough labor.

#10 | Posted by LampLighter at 2018-07-10 10:48 AM | Reply

Advertisement

Advertisement

Yea right.

It's amazing the perception that a change in "shade" can bring in this country.

#11 | Posted by fresno500 at 2018-07-10 12:13 PM | Reply

^^^ amazing should be "unfairly depressing".

#12 | Posted by fresno500 at 2018-07-10 01:03 PM | Reply

"America's labor shortage is approaching epidemic proportions, and it could be employers who end up paying,"

Oh crap, the sky is falling again. Some wages are going to go up and many are NOT.

#13 | Posted by Sniper at 2018-07-10 01:18 PM | Reply

Mexico will be the beneficiary of this, Trump will be confronted by corporate honchos and cave in on tariffs.

#3 | Posted by danni

Like they have an abundance of high skilled labor to send north. You are VERY funny ddan. There is no shortage of unskilled labor.

#14 | Posted by Sniper at 2018-07-10 01:21 PM | Reply

Will the companies have to raise prices in order to pay the nearly non-existent talent?

#5 | Posted by LampLighter

Many college grads need to pull their head out. There is little demand for the liberal arts degrees they have.

#15 | Posted by Sniper at 2018-07-10 01:23 PM | Reply

No talent equals no profit. Waged will be forced upward

#8 | Posted by jamesgelliott

What wages? the no talent wages?

#16 | Posted by Sniper at 2018-07-10 01:24 PM | Reply

"So you are ignoring all the companies who have given raises and bonuses to employees."

Far more has been spent on dividends and buybacks than raises and bonuses.

Conservative estimate, I think it's about 10:1

So yeah, it's pretty safe to ignore that.

#17 | Posted by snoofy at 2018-07-10 07:27 PM | Reply

in order to pay for the nearly non-existent talent?"
No talent equals no profit. Waged will be forced upward

#8 | POSTED BY Comrade JimmyG

I'm still amazed that morons like the above still believe the myth of trickle down economics! Sucker! Trickle down economics has failed for almost 40 years, unless you are at the very very top!


#18 | Posted by aborted_monson at 2018-07-10 08:12 PM | Reply

Trickle down economics has failed for almost 40 years, unless you are at the very very top!

POSTED BY ABORTED_MONSON AT 2018-07-10 08:12 PM | REPLY

Oh it works and works beautifully. The average joe feels wetness on his backs and the government tells them it's golden rain from heaven.

#19 | Posted by LauraMohr at 2018-07-10 08:15 PM | Reply

#2 | POSTED BY LAMPLIGHTER AT 2018-07-10 10:11 AM | FLAG:

I keep seeing use of the term 'wealthy stockholders' which is a misnomer as there are millions in this country who hold stock in IRAs, 401k and those who have a pension plan would also be invested in stocks and they benefit from those dividends as well as stock value growth. The vast majority of these people are not 'wealthy' as you are attempting to imply. Even I started accummulating some stock back when I was just a Tech Sergeant and believe me, wealthy I was not.

#20 | Posted by MSgt at 2018-07-10 08:25 PM | Reply | Newsworthy 1

we are all "products on a shelf". the less products on the shelf the higher the price

simple supply and demand

#21 | Posted by Maverick at 2018-07-10 08:32 PM | Reply

I work with a lot of manufacturers. the underlying problem is when they hire someone and send them to the initial drug screen they test positive for some drug use

#22 | Posted by Maverick at 2018-07-10 08:34 PM | Reply | Newsworthy 1

#22

Yep and as labor gets more scarce companies will have to decide between caring what their employees do in their off time or having enough employees.

#23 | Posted by TaoWarrior at 2018-07-10 08:45 PM | Reply | Funny: 1

#22 so them don't screen them.
Too easy, I know...

#24 | Posted by snoofy at 2018-07-10 08:46 PM | Reply

Maybe the brown kids will finally get offa Nulli's lawn what with this labor shortage and all.

Also, with the low birth rate, no wonder Trump is keeping some brown kids in cages, you know, just in case we need some in the coal mines.

#25 | Posted by Corky at 2018-07-10 09:21 PM | Reply

Wages remain stagnant. Traffic jams are the bane of life. The only thing worse is a jam packed noisy as hell NY subway.

The quality of our lives depends on health, education, beautiful clean environment, cheap energy and ...?

Heard any politicians broach quality of life issues lately?

#26 | Posted by bayviking at 2018-07-10 09:38 PM | Reply | Newsworthy 1

22

It's a challenge, for sure.

#27 | Posted by eberly at 2018-07-10 09:44 PM | Reply

How Democrats destroyed California jobs and how other Republican States are getting them...

www.youtube.com

Build the wall - Deport them all

#28 | Posted by Pegasus at 2018-07-11 12:02 PM | Reply

"No talent equals no profit. Waged will be forced upward"

Which is exactly why CEOs make as much as they do.

#29 | Posted by madbomber at 2018-07-11 12:27 PM | Reply

CEOs make 400x compared to burger flippers today, 20x greater than the 20x it was 40 years ago... why?

#30 | Posted by snoofy at 2018-07-11 12:47 PM | Reply

I'm still amazed that morons like the above still believe the myth of trickle down economics! Sucker! Trickle down economics has failed for almost 40 years, unless you are at the very very top!

#18 | Posted by aborted_monson

Explain to me how trickle up econ works. Give all homeless people 10k and they will all go out and buy a house and car so the carpenter and auto worker will have a job? Funny.

#31 | Posted by Sniper at 2018-07-11 03:01 PM | Reply

Oh it works and works beautifully. The average joe feels wetness on his backs and the government tells them it's golden rain from heaven.

#19 | Posted by LauraMohr

You are part right lau. It is the politicians giving you a golden rain from their heaven.

#32 | Posted by Sniper at 2018-07-11 03:03 PM | Reply

I work with a lot of manufacturers. the underlying problem is when they hire someone and send them to the initial drug screen they test positive for some drug use

#22 | Posted by Maverick

I had to take a 'whiz quiz about every 4 months for 18 years. Wasn't a problem. I did see some workers get escorted to the front gate when their results came back.

#33 | Posted by Sniper at 2018-07-11 03:06 PM | Reply

"How do companies attract talent that does not exist?"

On the job training? It used to be that you could get a good job with a high school diploma. Companies should take the initiative to grow their workforce for themselves.

If they don't like the quality of the available workforce maybe they shouldn't have fought so hard to lower taxes and thereby destroy funding for public education.

#34 | Posted by dibblda at 2018-07-11 05:29 PM | Reply

"I work with a lot of manufacturers. the underlying problem is when they hire someone and send them to the initial drug screen they test positive for some drug use"

I'm guessing that the executive class at places like these doesn't have to be drug tested, maybe they should be.....

#35 | Posted by dibblda at 2018-07-11 05:30 PM | Reply

One Christmas 20 or so years ago I worked warehouse for toys r us. They drug screened every applicant, but being Christmas at a toy store you would start same day you were hired and it took 2-3 days for the test to come back.

There was a revolving door in the warehouse for all the employees who worked 2 days and were gone. Sucked cause 2 days was the normal learning curve for the job.

I've always considered a drug test to be more of an intelligence test than anything else. Anyone with half a brain can beat one given a couple hours notice. The only way you get caught is if they had you a cup and walk you into the bathroom right then.

#36 | Posted by TaoWarrior at 2018-07-11 06:08 PM | Reply

#15 yeah, because teachers and artists get paid crap!

#37 | Posted by ichiro at 2018-07-11 11:16 PM | Reply

Dumb illegal immigrant propaganda but it was a good try. There is not a labor shortage in America. There is a labor shortage in places with people who don't have the skills or the desire to do the work that is located within that geographical location. Bleeding hearts have said before that people in 3rd world countries are at a disadvantage because they don't have Internet access and all the knowledge it comes with. Yet, when there are places in our own country that don't have it, you don't hear a peep. People don't want to live in those places so they go somewhere else, leaving behind a shortage of workers. The Internet is just one example, there are a lot of reasons why people don't stay in one area.

If they really cared about the country, the government would start offering to pay homeless people to relocate to where a job is and provide them a job. Only after that, should immigrants be chosen. Don't like it? Guess what, it's already done. Military people get precedence over jobs that match my skills. When I have an open position, I'm required to post it for veterans first before anyone else gets a crack at it. So spare me any grief over the same logic being applied to other jobs. You may not get every homeless person to move but if you get the attention of millions of people and offer them assistance to be moved somewhere with a job already waiting, even if only a small percent respond that is still enough to make up for the numbers of this so called "American labor shortage".

#38 | Posted by humtake at 2018-07-12 12:23 PM | Reply

"Pending Labor Shortage Is Good News for Workers"

Baloney.

"Real average hourly earnings unchanged from May 2017 to May 2018
JUNE 18, 2018

From May 2017 to May 2018, real average hourly earnings were unchanged, on a seasonally adjusted basis. Combined with a 0.3-percent increase in the average workweek, real average weekly earnings increased by 0.3 percent over the year."
www.bls.gov

Lies that full employment and that tax cuts would boost wages are baloney.

#39 | Posted by 726 at 2018-07-12 01:42 PM | Reply

"I'm guessing that the executive class at places like these doesn't have to be drug tested, maybe they should be....."

I've never been subjected to a random drug test but I've had to pass one to get every job I've had since college.

#40 | Posted by eberly at 2018-07-12 01:50 PM | Reply

How many jobs have you had since college Eberly? One?

#41 | Posted by snoofy at 2018-07-12 01:52 PM | Reply

Wages remain stagnant. Traffic jams are the bane of life. The only thing worse is a jam packed noisy as hell NY subway.

The quality of our lives depends on health, education, beautiful clean environment, cheap energy and ...?

Heard any politicians broach quality of life issues lately?

#26 | POSTED BY BAYVIKING

This is very well said ~

#42 | Posted by PinchALoaf at 2018-07-12 02:02 PM | Reply

We are getting closer to "conservative" dream job of BioRobots
Were you can go from training, to career, all the way to retirement in just 8 short weeks.

images.search.yahoo.com

#43 | Posted by ChiefTutMoses at 2018-07-12 02:04 PM | Reply

Usury should be banned.

#44 | Posted by mutant at 2018-07-12 05:02 PM | Reply

Usury should be banned.
#44 | POSTED BY MUTANT

Well, it is illegal, so...

#45 | Posted by rstybeach11 at 2018-07-12 06:13 PM | Reply

Usury is illegal?

I thought it once was, Christan nation and all that, but then states decided profits were more important.

As the story goes, all the states revoked their usury laws shortly after credit cards gained mainstream acceptance, about 40 years ago. This was because one of the Dakotas got the clever idea to lure card companies there by allowing them to charge usury. It worked, so all the states made usury legal, in order to compete for that business.

#46 | Posted by snoofy at 2018-07-12 06:23 PM | Reply

u·su·ry

the illegal action or practice of lending money at unreasonably high rates of interest.

#47 | Posted by rstybeach11 at 2018-07-12 06:45 PM | Reply

You're reading from a dictionary.

Im talking about the State laws which were repealed decades ago. Laws that were called usury laws.

#48 | Posted by snoofy at 2018-07-12 06:49 PM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2018 World Readable

Drudge Retort