In response to:

Goldilocks and the Bear Jobs Report

ideaminer Wrote: Mar 10, 2013 8:11 PM
If this is a really stupid question, I hope you and the others posting here will be patient. You say, "If the government would stay out of the way and let market cycles operate under the influence of normal economic forces....", but what I keep wondering is do "normal economic forces" include an entity like the Fed, that can expand or contract the money supply seemingly at will, without considering other economic factors? Or, are you including the Fed as a quasi-governmental agency? I guess what I'm asking, is can we, in the short-run, restore normal economic forces without restorng sound money? And, if not, which do we do first, deal with the federal debt and unfunded mandate or restore sound money?

As is typical, Wall Street and the media are celebrating a jobs report that is not nearly as positive as the headlines suggest. The continuing decline in the labor force participation rate was at least as important a factor as the new jobs created in bringing down the official unemployment rate to 7.7%. 

The participation rate has now dropped to 63.5%, the lowest level since 1981 when the rate had plunged due to a terrible recession. It is important to realize that at that time women had not fully entered the labor force.

Prior to that, a single...