This week, we speak with Danny Blanchflower, Professor of Economics, Dartmouth College, former member of the Monetary Policy Committee at the Bank of England, and author of Not Working: Where Have All the Good Jobs Gone?
Blanchflower discusses the details of the current employment situation: If we really are at full employment at 3.7% unemployment, then wage pressure should be sending salaries much higher. Instead, there is widespread underemployment, which is pressuring wages to the downside. This is why he believes wage increase have been so soft, barely keeping up with inflation at about 2%.
Blanchflower explains why he believes unemployment could bottom at 2.5%. He believes economists are under-estimating the odds of a recession, and the Fed should be cutting rates at this point in the cycle.
You can stream/download the full conversation, including the podcast extras on Apple iTunes, Bloomberg, Spotify, Google Podcasts, Overcast, and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.
Next week, we speak Josh Wolfe, co-founder of Lux Capital. The venture firm was set up to support scientists and entrepreneurs who pursue counter-conventional solutions to the most vexing puzzles in physical and life sciences.
Danny Blanchflower’s Book
Not Working: Where Have All the Good Jobs Gone? by David Blanchflower
Danny Blanchflower Favorite Books
The Works of William H. Beveridge: Full Employment in a Free Society by William H. Beveridge
One Hundred Years of Solitude by Gabriel Garcia Marquez
Unemployment As A World Problem by John Maynard Keynes