The benefits from a tight labor market are easy to see—the U.S. economy continued to add jobs at a pace of 400,000 per month for the past three months, which is remarkable considering the low number of people looking for work. Today, most people who want to work can find a job, and wages and salaries have risen faster than they have in decades.
Capital standards can be thought of as a way of reinforcing market discipline, because they shift more of the risk to shareholders relative to taxpayers. In this way, capital is the closest relative to market discipline among bank regulations. That is the good news about capital standards.