Comments on: The global youth unemployment crisis A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Latamer Sun, 01 Jan 2012 17:41:43 +0000 You talk Global but don’t mention africa, asia or latin america. Very well done.

By: watkinskb Thu, 29 Dec 2011 10:41:16 +0000 Can anyone say ‘overpopulation’? As technology has increased and relieved a few thousand workers of their tedium, so too have people lost respect for the earth. Less and less resources will leave us all fighting for scraps.

By: OneOfTheSheep Wed, 28 Dec 2011 09:38:41 +0000 There are too many unqualified or inexperienced “young people” competing for very, very few jobs.

And what do they all want? To make enough money to marry and have a family! What part of unsustainable do SEVEN BILLION people not understand? This isn’t an unemployment problem. It’s an overpopulation problem.

When it’s those with few or no skills that increase in number most rapidly, social pressures escalate rapidly. Those without function in a sustainable society historically become the greatest threat to civil order. They are also, ultimately, disproportionate victims of any shortfall in any of the civil resources that sustain life.

By: nicolas2 Fri, 23 Dec 2011 08:32:01 +0000 The differential between Germany and France is probably due to the unfit population.

If you remove them, the results are actually quite good then.

By: AdrianBunk Fri, 23 Dec 2011 07:19:47 +0000 @Strych09

“large numbers of them will go wildly into debt to pay for a rapidly-escalating-in-price college education”

Don’t assume that all the world has the problem of high tuition fees that is plaguing the USA.

In countries like Egypt or Germany or Finland tuition fees at public universities are either non-existing or very low.

There is a big scale from countries (like the USA) where people pay much money for their college education to (e.g. some European) countries where university is free and students get paid money from their government for covering their living expenses.

By: TFF Fri, 23 Dec 2011 02:17:28 +0000 Strych, you might enjoy this one (though it is hardly a new meme): rticle.html?id=2474

By: Strych09 Fri, 23 Dec 2011 01:43:47 +0000 I think TFF has hit upon something there. If we drum the idea that a college education is a necessary and required thing for a reasonably successful life into the heads of the young populations of middle eastern countries, then first, large numbers of them will go wildly into debt to pay for a rapidly-escalating-in-price college education, which creates demand for debt and debt products from Wall Street and secondly, they’ll be out of the job market for a few years, which reduces their unemployment rate by reducing the number of people looking for work (demand reduction).

Now, of course if the wonderful and perfect capitalist global free market doesn’t create enough high-paying jobs once those students graduate (have to pay back all that debt, don’t you know, so we can’t go into non-renumerative work like elementary teaching), then we’ll have an interesting situation on our hands…

By: AdrianBunk Fri, 23 Dec 2011 00:06:31 +0000 @FifthDecade

“To get out of the crisis we need more growth, not more austerity.”

The alternative to austerity is not more growth, the alternative is a large-scale bankruptcy of governments and banks with a huge impact on the global economy (and much higher unemployment rates than today).

“If you talk up growth and add in real incentives for corporates to invest their cash hoards to drive growth, perhaps through selective tax breaks”

The problem is that this won’t work:

Take BMW as an example – they are running their factories in 2011 on average over 110% (sic) of the nominal usage rate for coping with the demand. They don’t need tax breaks as motivation for investing into growing their production.

Many other companies have the opposite problem of not having enough customers for their products – they would not invest in growing their production, no matter what tax breaks are offered.

Therefore tax breaks would result in more debt without much additional growth – making the debt problems even worse.

By: FifthDecade Thu, 22 Dec 2011 23:29:46 +0000 As my grandmother would say, “too many cooks and not enough bottlewashers”.

If you train people to be chefs but you need ten times as many bottlewashers is it surprising you end up with too many of the former and have to import immigrants to perform the latter?

Meanwhile addicted consumers demand more and more for less and less, forcing their children out of jobs and passing over the wealth of Nations to China. If this was war, China would be winning it hands down – and with no losses. Actually, it IS war, the same weapon as used in every other war – money. China learned from how the West won the cold war: by bankrupting Russia. Why are people surprised the tables have been turned this time?

To get out of the crisis we need more growth, not more austerity. If you cut spending, the economy shrinks; when the economy shrinks, debt increases as a proportion of GDP. If you talk up growth and add in real incentives for corporates to invest their cash hoards to drive growth, perhaps through selective tax breaks, the economy grows, tax revenues grow, and the proportion of debt shrinks even if you pay none of it off.

In the 1930s depression interest rates were increased and this lack of liquidity caused things to get worse. Today, economic contraction is having the same effect, and the young are the ones who have to learn to cope with it.

By: Dr_Stonewafer Thu, 22 Dec 2011 20:43:52 +0000 Mr. Salmon: kudos on an excellent piece. This issue is probably the most grave one the world faces today, worse even than the Eurozone woes, the risk of Chinese bank failure, or just about anything else (save perhaps North Korean nuclear meltdown). The un(der)employment of the world’s youth may be a symptom or byproduct of other problems, but it has become so large and persistent in its own right that it will become the ultimate source of the world’s economic and social malaise.