Name: Why Everyone Can’t Have A Job In The U.S.
Uploaded: 2023-04-08T19:19:19.000Z
Duration: 9 min 18 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

There are nearly 10 million job openings in the U.S.

Almost everybody who wants a job can have one.

I said that almost everybody can have a job.

And that's by design of the Federal Reserve.

Dual mandate. And it focuses both on price stability and

Maximum sustainable employment is the highest

level of employment we can have without generating

The problem is that maximum employment target is much

less obvious than the 2% inflation rate target.

After all, the Fed itself says the max level of

There isn't a number and there isn't one particular

Labor market conditions are consistent with maximum

Here's why every American who wants a job can't have a

job and what maximum employment really means.

So the Fed aims for 2% inflation year over year

But for the other half of the dual mandate, there's no

And the unemployment market just doesn't work like that.

The Federal Reserve cannot directly control the

Really what they're trying to eliminate is the part of

the unemployment that goes up and down because of the

We're never going to have 0% unemployment.

And that would make sense, right? Because there's

always going to be movement in the job market.

When Federal Reserve Chairman Jerome Powell said

most of the members of the Federal Open Market

Committee saw the labor market as consistent with

consistent with price stability. And that is that

Whether we can raise rates and move to less

accommodative and even tight financial conditions

So what Powell is saying here is stable employment

hinges on the Fed's actions on inflation, whether they

Powell can raise or lower its price stability sails by

pulling the interest rate cables that will help him

So by controlling the sails of inflation, the Fed hopes

to set the labor market in the right direction.

The seas are pretty stormy, and the Fed has to steer

around some pretty big boulders in the harbor.

And so it makes it really hard because the wind might

shift and they may not realize the wind is shifting

In 2020, the Fed actually expanded its definition of

And it said it would no longer preemptively raise

interest rates just because the unemployment rate had

fallen low. It would wait until it saw an uptick in

That's when the Federal Reserve added broad-based

That's sort of where you start thinking about how do

Like we know for a fact that generally in any sort

of recession, it's going to be the low income workers

The Fed closely monitors this give and take

relationship between unemployment and inflation,

The natural rate of unemployment. This shows the

sustainable level of employment that doesn't

Unemployment that is consistent with expected

Part of managing this balance calls for the Fed to

make tough choices for the labor market that could make

I think it's hard to sell to the public that what you're

trying to do is make more people unemployed, right?

The economics is if you have so many people working and

employers scrambling for workers, we will get more

The Fed tries to keep perfect balance of jobs to

The law doesn't have the word sustainable in it.

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Why Everyone Can’t Have A Job In The U.S.

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