The Fed’s Nightmare: Labor Inelasticity
by Chris Black Even as demand for labor continues to increase with economic growth, the supply of labor in the U.S. is stagnate absent ever larger wage increases. The working age population of the U.S. plateaued a few years ago (https://fred.stlouisfed.org/series/LFWA64TTUSM647S), so increases in labor supply have largely come from attracting those outside the work …