Labor Economics: Productivity, Housing Market, Mortgage & Trade Deficit

Labor Economics: Productivity, Housing Market, Mortgage & Trade Deficit

Labor Economics: Productivity, Housing Market, Mortgage & Trade Deficit

In 2021, the National Low Income Housing Coalition released a report, Out of Reach: the High Cost of Housing, where they stated that “a full-time worker needs to earn an hourly wage of $24.90 on average to afford a modest, two-bedroom rental home in the U.S. The Housing Wage for a two-bedroom home is $17.65 higher than the federal minimum wage of $7.25, and $6.12 higher than the national average hourly wage of $18.78 earned by renters. In 10 states and the District of Columbia, the two-bedroom Housing Wage is more than $25.00 per hour.”

The situation for some in the bracket may have gotten worse amid inflation and supply shortages. There has been news, recently, about mortgage delinquency rates, chilly housing market, the red-hot labor market, and low economic productivity. There has also been news on interest rate hikes as well as suggestions of unemployment against inflation.

Although the dollar hit its strongest against the euro in years, the most important thing is how can the trade deficit be gone for good?

There are several indicators of a good economy, where productivity is vital.

The Minimum wage is weak and not enough for those in the lowest income bracket. The minimum wage also cannot be too high, according to some economists, to avoid offshoring jobs, or employers unwilling to hire more workers.

Weak minimum wage is an opportunity for employers and employees, because if it is not enough, what can be adjusted around it, to have labor glut thrown at productivity across industries to keep out supply problems, lower inflation and have trade surplus? Two-hours tier work.


People are hired to work in roles for just two hours per stretch but to earn around half the minimum wage. The reason for this low pay is that 2-hours may not be long enough to demand too much mental and physical input. The pay, which may not do much for cost of living, would at least provide a minimum income, with lesser work burden, which could offset a part of purchasing necessities.

Housing and some other “perks” could be provided for the two-hour tier workers in a county or state, so that they have that part of their cost of living checked in a public-private arrangement.

The goal is to produce semiconductors, and several other in-demand necessities to export around the world.

The objective is to have more people available to do the intense work, but for capped hours, distributing what should be too much for one person, for a minimum wage that is not enough.

There could be other perks, especially after sales and what happens in the market, which can be agreed that if it works, it comes, if it doesn’t, then nothing, but the basic pay is half the minimum wage.

This proposed labor economics model could be useful to solving the housing crisis and homelessness in some places, job losses in former industrial towns and lack of employment for many others — while boosting economic output.

Share this article

Leave your comments

Post comment as a guest

terms and condition.
  • No comments found

Share this article

Stephen David

Research in Theoretical Neuroscience
Cookies user prefences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics