The first is by Mark Perry, who I will start by saying, is one of the few econ bloggers who seems to appreciate what a huge deal North American fossil fuels are to the future of working class people. That having been said he also says
The recovery of both output and profits to above 2007 levels with 6.6 million fewer workers could explain the sluggish job growth that will probably continue for several more years. If companies can produce more output now than in 2007 with fewer workers and record profits, where’s the incentive to hire more workers?
This is the Lump of Profits Fallacy that I hear all the time and it drives me insane. What’s the incentive to hire more workers? To make ever more profit!
There is no “enough profit.” More is always better. More profit yesterday. More profit today and still more profit for breakfast tomorrow.
As I have said to associates before: If you ever find yourself thinking “maybe we have made enough money” stop. Reflect on how you feel at that exact moment. Commit that feeling to memory. Because that is how it feels to be completely and utterly wrong in every conceivable way.
The only thing that irks me as much as this, is the “search for yield” meme. When people want to claim that because interest rates were so low we had to go out and look for ways to make yield.
Really? Because normally you just let ways to earn yield pass you by?
If someone honestly told me that he threw my money away because “well we were already earning a descent return as it was” I just can’t imagine what I would do that person. I’m enraged just writing about the hypothetical possibility.