[LordOpie]

1. Why is 5% unemployment considered low?

"White House economists, like many of their counterparts on Wall Street, also expect unemployment to remain low this year, around 5 percent..." link

As some of y'all know, unemployment numbers don't included underemployment, those so disenfranchised that they stop looking, those who basically were forced to be housewives/husbands due to lack of opportunities. So, again, 5% is only the number of people looking for work, but not able to find any. As such, how is 5% acceptable?

2. EU is pissed at the US for unfair trade practices, like tax credits on exports for companies like Boeing.

Isn't the point of such credits to make us more competitive? With the value of the dollar not very strong, doesn't that make our exports more competitive as is. Also, is the EU just pissed that the Euro is stronger than they may want it to be? I remember Japan getting upset when the Yen got stronger than the $ that they wanted.

Discuss.

 

[LordOpie]

aww, no economics discussion today?

 

[ohio]

1. Why is 5% unemployment considered low?

But the figures have always included those no longer looking for work, so I don't see anything wrong with comparing that number against historical values and other nations.

2. EU is pissed at the US for unfair trade practices, like tax credits on exports for companies like Boeing.

Isn't the point of such credits to make us more competitive?

It makes us more competitive in the industry we choose to subsidize at the incremental expense of every other industry, via higher taxes --> higher cost of living --> higher cost of labor. So the EU can bitch and moan about Boeing vs. Airbus (which is also subsidized, I believe) but really all we're doing is giving China, Korea, India, Japan, and Eastern Europe a better position in manufacturing.