Thursday, February 26, 2015

The simple reason Walmart & TJ Maxx are handing out raises — people are quitting

Vox reports The simple reason Walmart & TJ Maxx are handing out raises — people are quitting

"The past five years of sluggish job creation and weak wage growth have spawned a cottage industry of big-think about what ails the American economy. Maybe Obamacare crushed job creation? Maybe it's a 'skills gap?' Maybe the Chinese stole our jobs? Or immigrants? Or robots?

It turns out that all of this is wrong. Back in the winter of 2008–2009, the country suffered a large collapse in aggregate demand related to the collapse of the housing bubble. From 2009 to 2014, political disagreements prevented the government from plugging the gap with gigantic fiscal stimulus, and timidity about 'unconventional' measures prevented the Federal Reserve from doing so either. But all that time, the economy was slowly healing. And now it shows real signs of operating like normal. People try to quit the worst jobs around, and companies respond by trying to make the jobs better."

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