The Shortage of Capable Workers

Sometimes it’s the obvious that the experts overlook. When unemployment hits 50-year lows, the economy slows down. Why? Because there is a shortage of capable workers. Duh! This is exactly what the Fed's last survey of business conditions, as contained in their most recent "beige " book, revealed as the major business problem in most areas of the US.

If you don't believe it, just ask your favorite contractor how long it would be for him to start an addition on your house. I have, out of interest, as I traveled through Florida, NC, RI, and CA. The best I got was . "maybe 3 months".

The good news for the economy is the fact, again seemingly overlooked by the "economists" that write most of the articles today, that the current shortage of workers in the face of strong demand will keep wages going up. The consumer dominates the economy, not trade "wars" with China. Our exports to China are less than 1% of GDP. Consumer spending accounts for 68% of GDP.