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"This puts a significant premium on taking immediate steps to raise productivity, encourage innovation, augment human and physical capital, and increase labor force participation".
In this economic environment, rising health care costs are particularly burdensome because they increase labor costs even as wages are barely moving.
Throughout his speech, Obama stressed that the new trade agreement would help increase labor standards and wages for workers in the other participating countries.
These reports, based on consultations with the respective governments, show a remarkably consistent pattern: reduce the size of government, reduce the bargaining power of labor, cut spending on pensions and healthcare, and increase labor supply.
Tax incentives might indeed increase labor supply and output, they acknowledge, but what good is that if there is insufficient demand for the additional labor and for the goods and services that are produced?
Third, a stronger currency would increase labor costs in China, making it less attractive for American companies to move jobs to China and thus keeping more people employed at home.
Similar(20)
Rising prices are often attributed to increasing labor costs.
Unfortunately, it comes at a time of increasing labor shortages.
They said increased labor costs would drive New Orleans employers to the suburbs or even farther.
"In the long run increasing labor mobility will be very important for Japanese corporations," he said.
He blames Obamacare for increased labor costs and has diagnosed a "government-mandated restaurant recession".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com