Economists win Nobel for search theory

Gist: Three economists were awarded the Nobel Prize in Economics for helping to explain why big, complex markets like for houses or jobs don't always do a good job of matching buyers and sellers. These Nobel winners have described in complicated equations is the "friction" that gets between actual buyers and sellers. It's all the added costs and complications of searching. People will wait for the best offer they may be able to get. The same situation in job market, all those unemployed workers are waiting for the best offer. If the unemployment benefits that are higher than the low-wage jobs that are available, people would rather stay in the position where they originally stay.

Not only little citizens hoard their money, but big companies do

Gist: There is still looking good on earning numbers. However, it is not quite the sales do the jobs but the layoff helps the expense saved on personnel.

Many big companies now is cutting their expense and hoarding the cash in case of the rainy day. Personnel are usually the primary target that can save a lot of money when there is no sales number rising up. Nobody wants to spend money so that the demand in the market is falling. When there are no demands for companies’ products, there are no jobs for people to make those products. People do not get paid so they will not be willing to spend money on anything. This cycle then will keep running over and over until the recovery arrived.