Ellen Zentner: Labor Slack Remains in U.S. Economy

The video discusses the complexities of the labor market, highlighting underemployment and the challenges of monetary policy in addressing these issues. It examines the decline in productivity since the 1970s, the shift from manufacturing to service sectors, and the implications for job quality and real wages. The discussion also covers the persistent economic headwinds affecting the Federal Reserve's interest rate decisions. Global productivity puzzles and the impact of technological advances on GDP are explored, along with the effects of corporate debt on productivity. Finally, the video critiques the Fed's slow response to market conditions.

What is a significant issue in the labor market despite job creation?

• Low inflation

• Overemployment

• Underemployment

• High wages

What has been a major trend in productivity since the 1970s?

• Secular decline in productivity

• Rise in real wages

• Increase in manufacturing jobs

• Growth in agricultural output

What is a challenge in measuring productivity in the modern economy?

• Mismeasurement of non-market values

• Lack of data

• High inflation rates

• Excessive government regulation

How have technological advances affected productivity measurement?

• They have made it easier to measure

• They have no impact on measurement

• They have introduced new challenges in measurement

• They have increased GDP directly

What has been the impact of low interest rates on corporate debt?

• Fall in marginal productivity of corporate debt

• Increase in traditional investments

• Decrease in corporate debt

• Rise in inflation

What is a reason for the slow response of the Federal Reserve to market conditions?

• Lack of data

• Groupthink among academics

• High inflation

• Rapid technological changes

What is the market's perception of the Federal Reserve's future rate hikes?

• They are not believed to happen as projected

• They are expected to increase rapidly

• They will remain unchanged

• They will decrease significantly