Gary Shilling Says the Fed Is Missing Globalization

The video discusses the potential for policy mistakes due to a lack of focus on globalization. It highlights the shift of manufacturing to Asia and the need to consider the global economy rather than just domestic factors. The availability of labor and capital on a global scale is emphasized, along with the impact of protectionist policies. The discussion also covers unemployment rates, noting that changes in labor force participation affect these rates. Historical references to the Fed and Bank of England's unemployment targets are included.

What is a major oversight in current economic policies according to the video?

• Focus on domestic economy

• Emphasis on technology

• Increase in local manufacturing

• Reduction in global trade

How has the shift in manufacturing affected the global economy?

• Increased local employment

• Decreased global labor availability

• Shifted production to Asia

• Reduced capital equipment

What could potentially change the economic game according to the video?

• A rise in domestic wages

• A 4% neighborhood growth

• A decrease in global trade

• An increase in local production

What happens to the unemployment rate when fewer people look for work?

• It fluctuates

• It decreases

• It remains the same

• It increases

What demographic changes have affected the labor force participation rate?

• Decrease in education levels

• Increase in young workers

• More people retiring

• Rise in part-time jobs