The labor market is not strong. Like the economy, it is weak.

The “strong” labor market has been the excuse for the Fed to hike rates because according to their preferred model, inflation will soon pick up. They discount the fall in the labor force appealing to demographic factors. Population growth, however, has dropped to levels seen 20 years ago, before the immigration boom of the 1990s showed up in the 10-year population growth rate. What happened to the labor market after 2007 was not demographic, but was the result of the biggest monetary disaster in 60 years! It was following that event that American workers gave up looking for work that…

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