Perhaps someone can explain to me how the ability to fire people more easily will boost the labor participation rate?

Is it that the fear that once a firm hires someone they will never be able to let them go in case of a business downturn? If that is the case, isn't the real problem then, that firms don't see any possibilities for growth?

This sounds like a vicious circle.

A far as S&P and the other rating agencies, their economists are just a caught up in conventional wisdom as anyone else. If they weren't so then US Treasuries would be rated B- by now.


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---- Daily Landscape