94,044,000 Americans Not in the Labor Force

[_canpakes]

Maybe your wife should go back to work. Doesn't it bother you that she is one of the riders?

I suspect that it does, at least on a subconscious level, and ranting here about the labor participation rate at regular intervals is one of the only ways that he can let off steam about her being a 'free rider' off of his work and time. He cannot otherwise do it openly as that would just create a more miserable home situation. This board, and this particular subject, is his proxy emotional release.

We see the same sort of thing a lot with ldsfaqs.

[_honorentheos]

My point is that there are currently only 3 people pulling the wagon for each person riding in the wagon. Judging by the size of our debt the wagon has been rolling backward for some time. How many people can we afford to let ride in the wagon for each person working? One rider for three pullers isn't working. Is 2 riders for every 3 pullers going to work better? Tell me how many it's going to take to get the wagon moving forward again and I'll consider answering your questions.

What evidence do you have that the wagon isn't moving forward? What does that actually mean? The economy has been improving based on most measures for a while, if not exactly stable it's at least not sliding backwards despite some potential headwinds in the global economy right now. Service sector growth was ok in an otherwise unremarkable jobs report last week. Last I checked that's where you would fit in given your occupation.

So what exactly is it that has you so tied up in knots over the economy given in the grand scheme of it all you have a rather secure field you are working in, a business practice that is yours to grow or kill all on your ownsome, and probably less to worry about than 99% of the global population. Your constant bitching seems rather petty when it's all put into perspective, really.

Labor participation isn't really a micro-political issue, in my opinion. If you look back over the last few decades it's been independent of political power holding, Presidential influence, or even the debt if that's your thing. Though immigration is tied to it more favorably than you might want to know about but that's another issue for one of your other posts I'm sure. It'd tied to much bigger trends that aren't neatly aligned to political terms of office. For example, the peak labor participation rate in the US ended just before Clinton left office. It was down almost two percentage points under Bush before the great recession hit. What's going on and why are debated by economists but I don't think you'll find many who would get on board with some partisan political position on the question. From the Bureau of Labor Statistics, for example:

Faced with a steady decrease in the labor force participation rate, economists and policy makers are debating the reasons underlying the substantial decline in participation that has taken place since the peak of 67.1 percent over the years 1997 to 2000. Economists are divided on the subject. Some believe that the decrease in the participation rate is a long-term phenomenon resulting from demographic and structural changes occurring in the U.S. economy. Others suggest that the current decline in the participation rate is mainly a short-term cyclical factor caused by weak demand for labor and insufficient opportunities in the job market.

On the demographic side, economists believe that the change in the age composition of the population is the primary factor responsible for the recent downward trend in the labor force participation rate. A prime example of a demographic change affecting the labor market is the aging of the baby-boom generation, born between 1946 and 1964. By their sheer numbers, the baby boomers always have been a generator of change at whatever stage of life they entered. A positive demographic effect was experienced back in the 1970s when baby boomers joined the prime-age (25 to 54 years) workforce and caused an increase in the labor force participation rate. In 2000, when all the baby boomers were in the prime-age group—the group with the highest participation rate—the overall participation rate soared to its highest level. By contrast, the U.S. labor market is now experiencing a negative demographic compositional effect as the baby-boom population moves from an age group with a higher participation rate to an age group with a lower participation rate. In 2015, this large segment of the population was between 51 and 69 years old, ages whose labor force participation rates are much lower than those of the prime-age group. The sheer size of the baby boomers and their current shift to older age groups, according to this worldview, has resulted in the current decrease in the overall participation rate and will affect the growth of the labor force for at least another 10 years.

On the other side are economists who attribute the decline in the labor force participation rate to cyclical factors or the boom and bust cycles in the economy. During economic expansions, job opportunities abound. Those who are marginally attached to the labor market may participate more actively, those who are contemplating retirement may alter their plans, and those who are thinking of going to school may defer their education. During economic downturns, all those factors work in reverse, leading to a lower overall participation rate. Economists and policy makers of this camp believe that economic downturns in general, and the recession of 2007–09 in particular, are responsible for the decline in the labor force participation rate by lowering the level of economic activity and suppressing aggregate demand.

Most economists who have studied the recent downward trend in the labor force participation rate have taken both demographic and cyclical factors into consideration in their analysis and predict that a declining labor force participation rate will continue in the future. The question becomes, To what extent do any of these factors affect the movement of the labor force participation rate? One answer comes from the president’s Council of Economic Advisors, which estimates that the decline in the overall labor force participation rate can be attributed to three main sources:21

About half of the decline is due to the aging of the population.
About one-sixth of the decline is a cyclical decline.
About one-third of the decline arises from other factors.
The Council of Economic Advisors projects that “continued recovery…in the [labor force] participation rate from cyclical factors will be roughly offset by the aging effect, leading to a mostly unchanged participation rate on net….Once [the effect of] the cyclical rebound fades,…assuming no policy or other structural changes, the participation rate will resume its downward trend [because of] aging.”

In its latest analysis of the labor market, the Congressional Budget Office (CBO) concludes, “Of the roughly 3 percentage-point net decline in the labor force participation rate between the end of 2007 and the end of 2013, about 1½ percentage points was the result of long-term trends (primarily the aging of the population), about 1 percentage point was the result of temporary weakness in employment prospects and wages, and about one-half of a percentage point was attributable to unusual aspects of the slow recovery that led workers to become discouraged and permanently drop out of the labor force.”22 In addition, CBO projects that the aging of the population will further reduce labor force participation during the coming decade and that the rate will decline to 60.8 percent by 2024, a significant decline compared with a participation rate of 66.0 at the end of 2007.

[_just me]

So what exactly is it that has you so tied up in knots over the economy given in the grand scheme of it all you have a rather secure field you are working in, a business practice that is yours to grow or kill all on your ownsome, and probably less to worry about than 99% of the global population. Your constant bitching seems rather petty when it's all put into perspective, really.

From what I can glean ajax actually works for someone else. He makes 6 figures. His wife quit her job because it put them in a higher tax bracket and he doesn't understand how the taxation system works. They lease vehicles. It appears they live paycheck to paycheck.

I think he is bent because he can't figure out how to retire. He lives the American Dream, but through mismanagement has found it to be a nightmare. Rather than learning how to fix his situation he spends all his extra time complaining about the unemployed, unwed mothers and immigrants.

[_honorentheos]

So what exactly is it that has you so tied up in knots over the economy given in the grand scheme of it all you have a rather secure field you are working in, a business practice that is yours to grow or kill all on your ownsome, and probably less to worry about than 99% of the global population. Your constant bitching seems rather petty when it's all put into perspective, really.

From what I can glean ajax actually works for someone else. He makes 6 figures. His wife quit her job because it put them in a higher tax bracket and he doesn't understand how the taxation system works. They lease vehicles. It appears they live paycheck to paycheck.

I think he is bent because he can't figure out how to retire. He lives the American Dream, but through mismanagement has found it to be a nightmare. Rather than learning how to fix his situation he spends all his extra time complaining about the unemployed, unwed mothers and immigrants.

I didn't realize he was employed by someone. He had previously mentioned taking out a loan which I had understood was to start his optometry practice but apparently I misunderstood. Thanks for the clarifications. :)

[_canpakes]

From what I can glean ajax actually works for someone else. He makes 6 figures. His wife quit her job because it put them in a higher tax bracket and he doesn't understand how the taxation system works. They lease vehicles. It appears they live paycheck to paycheck.

I think he is bent because he can't figure out how to retire. He lives the American Dream, but through mismanagement has found it to be a nightmare. Rather than learning how to fix his situation he spends all his extra time complaining about the unemployed, unwed mothers and immigrants.

I never could see the benefit of leasing vehicles except in some very unusual circumstances. The cost of leasing seems inordinately painful over the long term considering the increased insurance and registration costs on top of the monhly payments. It doesn't allow one to be creative with their approach to auto ownership. That's fine if you have the disposable income to handle it, but seems financially risky otherwise. But maybe I'm just not very knowledgeable about leasing

[_just me]

From what I can glean ajax actually works for someone else. He makes 6 figures. His wife quit her job because it put them in a higher tax bracket and he doesn't understand how the taxation system works. They lease vehicles. It appears they live paycheck to paycheck.

I think he is bent because he can't figure out how to retire. He lives the American Dream, but through mismanagement has found it to be a nightmare. Rather than learning how to fix his situation he spends all his extra time complaining about the unemployed, unwed mothers and immigrants.

I didn't realize he was employed by someone. He had previously mentioned taking out a loan which I had understood was to start his optometry practice but apparently I misunderstood. Thanks for the clarifications. :)

I could have missed a new development. If he did start his own practice that is a new thing and a bit surprising given how risk averse ajax is. I wish I new his age range.

[_ajax18]

I never could see the benefit of leasing vehicles except in some very unusual circumstances. The cost of leasing seems inordinately painful over the long term considering the increased insurance and registration costs on top of the monthly payments.

How do you get to work if you don't take out a loan to buy a vehicle?

[_canpakes]

I never could see the benefit of leasing vehicles except in some very unusual circumstances. The cost of leasing seems inordinately painful over the long term considering the increased insurance and registration costs on top of the monthly payments.

How do you get to work if you don't take out a loan to buy a vehicle?

I've bought all but two of my vehicles with cash. Of the two that were not, one was leased (not completely my choice or preference at the time but there was an exploding vehicle that drove that decision, lol) and after that experience decided that I would never do that again.

While a student, I relied both on my own car and bus service to commute to my job, depending upon if I was leaving from school or home.

[_ludwigm]

... ajax ...
He makes 6 figures.

I make 6 figures. Maybe it is 7 by Your System...

I got 200 000 in a month. Six figures. (I am pensioned; so don't work... ajax??? Should I commit suicide or go to work anyway? I am 71.)
It is 2 400 000. Seven figures for a year.

What? Seven figures?
In HUF. Hungarian Forint. Look at rate...

In "$" I get 8.7K in a year. How many figures?
I used to serve my country for 39 years, as a regular.

Do any of You knows anything about Europe? Hungary, maybe?
I pay 332 for the gasoline.
332 HUF for one litre. This would be $5.43 for a stupid gallon.

When we visit some of our grandchildren, (11 of 20...), it is come about my wife's monthly tithe. And we don't ever go with empties.

Got it? Prophets, seers etc etc of a worldwide church...

[_Kevin Graham]

How do you get to work if you don't take out a loan to buy a vehicle?

This! Coming from the same guy who's been bitching and moaning about people spending money they don't have. Not only is he perpetually ignorant, he's also a hypocrite.