Monday, December 05, 2016


I think it's cute (well, perhaps not the best word for it) when politicians (and the media) fight about which policies create the most jayyuubs. Yes more jobs are better than fewer, and the more we inch towards full employment (unemployment a bit lower than it is now, emp/pop a bit higher) the better, but there are limits to this as long as the Fed is going to take away the punchbowl the second there are "too many" jobs, or more specifically the second there is evidence that wages are actually rising.

You can see almost back to back headlines of "Will tax cuts create jobs?" and "Signs of job growth signal Fed to increase rates." There ain't much point in creating jobs, through the tax cut fairy or any other means, if the Fed is just going to take them away.