Saturday, April 19, 2014
secstags or policy-induced paralysis
When It Comes to Generating Jobs It Pays Not to Listen to the Experts by Dean Baker
It is remarkable that no country has outlawed economics as a dangerous occupation on a par with drug dealing or murder for hire. The damage done to the world over the last seven years based on policies designed by economists has been incredible.
Floyd Norris documents this fact in a nice piece comparing the change in employment rates (the percentage of the population employed) in rich countries since 2007. The only two countries with higher employment to population ratios today than at the start of the downturn are Germany and Japan. Both countries have broken with the economic orthodoxy in important ways.
In Germany, the government has adopted policies that encourage employers to keep workers on the payroll by cutting back hours rather than laying them off. As a result, their unemployment rate is almost three percentage points below its pre-recession level even though its growth has actually been somewhat slower than in the United States.
Japan has adopted a policy of aggressive deficit spending even though its debt to GDP ratio is already more than twice that of the United States. It also has deliberately targeted a higher rate of inflation as a way of lowering real interest rates and reducing debt burden. As a result, it has created a number of jobs that would be the equivalent of more than 4 million in the United States.
In short, ignoring the economic orthodoxy works. Listening to orthodox economists brings destruction to the economy and devastates peoples' lives.
Friday, April 18, 2014
Thursday, April 17, 2014
Tuesday, April 15, 2014
Monday, April 14, 2014
Purple Wedding
AV Club reviews Game Of Thrones (newbies): “The Lion And The Rose”
AV Club reviews Game Of Thrones (experts): “The Lion And The Rose”
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