Monday, September 27, 2010

Krugman on Structural Unemployment

Talking about long-term unemployment, Dr K as usual displays both erudition and sense. The money quote: So all the evidence contradicts the claim that we’re mainly suffering from structural unemployment. Why, then, has this claim become so popular? Part of the answer is that this is what always happens during periods of high unemployment — in part because pundits and analysts believe that declaring the problem deeply rooted, with no easy answers, makes them sound serious.

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