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Another possibility, frequently cited by Mr Greenspan, is worker insecurity.
A better health-care system also is crucial to bolstering U.S. competitiveness and relieving worker insecurity.
While worker insecurity is high in troubled industries like telecommunications and airlines, not everyone is worried about layoffs.
Greater worker insecurity, it is true, may persuade workers to moderate their pay claims and so reduce the wage pressure that is associated with particular rates of unemployment.
"In the past," said Ian Shepherdson, chief United States economist at High Frequency Economics in Valhalla, N.Y., "Greenspan has used the worker insecurity story to help explain the relatively low rates of wage increases in the current expansion".
Nonetheless, it is hard to square serious worker insecurity with other surveys that suggest consumer confidence is buoyant and people reckon it is easier than ever to get a job.Regardless of cause, it is clear that the simplistic adoption of a constant NAIRU framework is currently a weak tool for formulating policy.
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Second, the most critical cases of worker insecurities are found in the most economically deprived countries in Africa (e.g., Guinea-Bissau, Mauritania, Rwanda, Asiaa (e.g., Indonesia, Nepal, China, India and Eastern Europee (e.g., Albania, Armenia, Bulgaria) [ 60] p. 276.
The story is all too common in Somalia, where restricted access for aid workers, insecurity and lack of public awareness have left a large proportion of children unvaccinated against polio and other deadly diseases.
Easy hiring and firing is seen by the government as a major selling point for companies, whatever the costs for workers in insecurity and powerlessness.
The jostling for the Democratic presidential nomination could well coincide with sluggish growth, increasing the appeal both of business-bashing and protectionism.There are plenty of ideas to counter this, mostly clustered around assuaging American workers' financial insecurity.
One of the main justifications for the inequality between labour and capital – that profits are invested for the general benefit – is today especially questionable because corporations and banks are sitting on their cash even as workers suffer insecurity and unemployment.
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