Did you know that 355,000 people were laid-off last week because Obama was re-elected? Or, at least, that’s what many Conservative activists would have you believe. Apparently, there is this growing meme going around the internet that companies are laying people off because Obama and “Obamacare” is here to stay. This is all likely . . . → Read More: Debunking Those So-Called “revenge”/”Obamacare” Layoffs (w/Math)
Modern, mainstream economics universally recognizes three types of unemployment: frictional, structural, and cyclical. Some people add in seasonal unemployment to give us four types of unemployment. These types of unemployment are pretty universal. Not only on the net(see here, here, here, and here), but in N. Gregory Mankiw’s Intro text book, Principles of Economics, . . . → Read More: Types of Unemployment
Conservative politicians and commentators repeatedly assert that employers need to reduce “labor costs” to stay competitive(Examples here and here). They assert that lower wages will be better for the country by creating more jobs and cheaper products. These assertions do not standup well against 30 seconds of critical thinking. Putting aside the morality of . . . → Read More: The Cost of Labor SHOULD be High
Nothing makes an argument more frustrating than when 2 people are using the same words to argue over 2 different things. When discussing strategies to get out of the recession, market fundamentalists (usually conservatives) argue to let the markets work. Others, usually liberals who sorta-kinda understand Keynesian economics, argue that we need more stimulus to . . . → Read More: Unemployment Vs. Economic Efficiency
Once when I was explaining Modern Monetary Theory(MMT) to someone in person, she asked me in a very irritated tone, “what is your point?” I realize now that getting too far into the details about government spending, trade deficits, and bond markets can make some people’s eyes glaze over without assuring them that the end . . . → Read More: Job Guarantee: Zero Unemployment Without Causing Inflation
Economists and the fed talk a lot about inflation and it’s huge costs to the economy. However, since the fed currently controls inflation by wrecking the economy and causing unemployment, we should be aware of all the short and long term consequences of unemployment.
Unemployed is the state of wanting to work, but not able . . . → Read More: The Cost of Unemployment
I laid out all the bad things about inflation and why it should be kept low and steady. So how does our policy makers currently control inflation? By trying to wreck the economy. Long ago, congress entrusted the federal reserve to conduct monetary policy to promote “promote maximum employment, production, and purchasing power“. The people . . . → Read More: How We Currently Control Inflation