The key graph:
Assuming the economy is “trying” to reach equilibrium, this suggests that it “wants” less workers.
If that is a secular trend, as suggested by the steadily lengthening jobless recessions since the 80s,
…we’re faced with the need for a new structure wherein people’s claims to a decent share of the pie are not linked to their ability (luck) in finding well-compensated employment. Alternative means are necessary to provide widespread prosperity and the widespread demand that gives producers the incentive to expand and innovate.
Have I mentioned expanding the EITC lately, and indexing it to unemployment?
Cross-posted at Asymptosis.