How Trump’s Fiscal Stimulus Will Affect the Labor Market

The video discusses the potential impacts of a Trump stimulus on the labor market, focusing on full employment and the possible lack of net gain in employment. It highlights vulnerable industries like construction, housing, infrastructure, and energy. The discussion also covers the relationship between full employment and inflation, noting changes in workforce demographics and education levels. Finally, it addresses the low participation rate and productivity, suggesting that rising wages could lead to increased investment in equipment and machinery, boosting productivity.

Which industry is considered a 'Canary in the coal mine' for labor market tightness?

• Technology

• Construction

• Retail

• Healthcare

What are the two major changes in the workforce over the past 20 years?

• Increased automation and remote work

• Aging workforce and higher educational levels

• More part-time jobs and gig economy growth

• Decline in manufacturing and rise in services

How might rising wages affect productivity according to the discussion?

• Reduce the number of jobs available

• Lead to more outsourcing

• Encourage investment in equipment and machinery

• Decrease the need for skilled workers

What is one reason for low productivity growth in recent years?

• High levels of investment in technology

• Increased global competition

• Low wages leading to hiring cheap labor

• Strict government regulations

What could potentially happen if labor market participation increases?

• Inflation could rise

• Wages might decrease

• Productivity might decline

• Unemployment rates could increase