Is unemployment "natural"?

Global Youth Unemployment Remains at Crisis Levels

July 22, 2013

James Heintz: 75 million youth in the global labor market are unemployed and few governments are taking common sense steps to address the problem

High Unemployment Due to Lack of Demand, Not Lack of Skills or Education

April 3, 2013

Jesse Rothstein: Low wages and lack of purchasing power the real structural problem, skills training and more education is not the critical solution

Is Unemployment "Natural"?

October 19, 2010

Bubbles Make Rich Richer Pt.2. Austerity measures will create higher "natural unemployment"

Bubbles Make Rich Richer and Others Unemployed

October 18, 2010

Bubbles Make Rich Richer and Others UnemployedJames Heintz: The battle to prevent economic bubbles is about to begin Oct. 18 – TRNN When economic bubbles crash, they leave many households unemployed and deeper in debt, but the investment behaviours that cause them can be minimized with detailed regulation, said the Associate Director of the PERI Institute in Amherst, James Heintz. The Financial Reform Act, passed this summer, gives the framework for such regulation but will need to be supplemented with specific directions intended to curb investment behaviour, said Heintz. “So it told, you know, the [Securities and Exchange Commission] that, yes, now you have to regulate derivatives in a way you didn't in the past, but it didn't say exactly how.” Derivatives are contracts that allow investors to make money by betting that the price of a stock will move up or down, and are one of the ‘speculative investment tools’ used to turn a quick profit,  that contribute to market bubbles. Heintz said economic bubbles are created by a large pool of investors simultaneously betting that stock prices are going up. They all start buying stocks, which forces up the price. “So it becomes a self-fulfilling prophecy,” he said. “Some of them might sell, some of them hold on to the stocks in anticipation of the prices going up further, and then you have a cycle: as more and more people enter and buy stock speculatively, not based on their long-run returns but based on trying to make a quick buck in terms of…