There is little danger of over stimulating the US economy
John Robertson
PortfolioDirect
There is little danger of over stimulating the US economy. The chart at (VIEW LINK) shows the US employment/population ratio. Every significant fall in the ratio over 65 years has coincided with a US recession. With the exception of the last two, the subsequent cyclical recoveries have restored or exceeded the prior levels of the ratio. An additional five percentage points - the difference between now and 2007 - would be an extra 12.3 million jobs. It would take six years at the current rate to generate that number (by which time the population base will be higher), offering ample scope for the economy to expand more rapidly. Fast growth might even come with higher unemployment rates in the event discouraged workers start returning to the labour force, keeping the Fed in the market longer than expected.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
Comments
Comments
Sign In or Join Free to comment