Labor
In the Noah Webster 1828 Dictionary, “labor” is defined as an exertion of muscular strength occasioning weariness, by which subsistence is obtained, and which contributes to health. According to The U.S. Department of Labor, Labor Day is an annual celebration on the first Monday in September of the economic achievements of the American worker. America is the most opportunistic, inventive, industrious and productive nation in world history, and it’s appropriate for Americans take a day each year to recognize those who toil, and have toiled, in the accomplishment of such historic, international stature.
Production is the backbone of an economically sustainable society. Properly defined by Austrian economists as the process by which a person works, is duly compensated, prudently spends less than earnings on sustenance, and invests the difference wisely, production is revealed to stand on the foundation of labor. On the other hand, lest we inappropriately congratulate our own efforts, the true light of “ole-fashioned hard work” must be seen for what it is: the use of a God-given strength or ability to provide for the needs of others, which happens to be the occasion of our own sustenance. It is a reflection of the Giver! The purpose of mountaineering is not to accomplish a feat or prove one’s own ability, but to witness the creativity, power, and glory of the Maker of the mountains! Labor serves the very same purpose.
The news on labor in America today is mixed but mostly positive. Though a strong work ethic is not prized as it once was, and with more Americans reliant on public assistance these days, a recent FRED report affirms 62.5% of eligible American workers still participate in the work force.¹ Scarcity of workers, in fact, is what is holding the economy out of recession today. Also, the increase in productivity associated with unprecedented technological advancement seems to be presently offsetting the reduction in human labor, sufficient even to support the higher voluntarily non-working component, given recent levels of monetary debasement. While it’s concerning that this trend is probably unsustainable long-term, the labor market has been the economic standout of late. A deep or lengthy recession will not likely accompany a tight labor market, and given the probability the Fed is approaching a cyclical peak in rate hikes, further asset price appreciation is supported in the midst of decelerating inflation. This favorable short-term outlook is mostly attributable to the output of working Americans.
I hope these thoughts are a blessing to you and your family in the celebration of Labor Day this weekend. Shaun
“Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.” ~Proverbs 22:29
“The laborer is worthy of his wages.” ~1Timothy 5:18
“Aspire to live quietly, and to mind your own affairs, and to work with your hands, so that you may be dependent on no one.” ~1Thessalonians 4:11-12
“The LORD made the heavens and the earth; the sea, and everything in them in six days, and on the seventh day he rested.” ~Exodus 20:11
1 Fred, Economic Research, “labor Participation Report”, August 30, 2023
https://fred.stlouisfed.org/series/CIVPART
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