Tag Archives: Unemployment

Barro on Unemployment

Barro’s explanation for our current unemployment rate doesn’t make sense within the context of the present recession. Extended unemployment benefits are not a major negative impact on the unemployment rate. The problem is a lack of productivity. Continue reading

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Further Notes on Capital Theory and Unemployment

Austrian capital theory does explain why the consumer-good industry is hit, along with the capital-good industry, during recessionary periods. Furthermore, Austrian business cycle theory is not real business cycle theory – there is a different in causation, while the latter tends to lend itself to the pitfalls of macroeconomic aggregation. Continue reading

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Defining Employment

Is involuntary unemployment possible? Debate between Misesians. Continue reading

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Affording the Unemployed

“Affording the Unemployed”, my latest article at Mises Daily. Also, some thoughts on the insider-outsider theory of unemployment. Continue reading

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Aggregate Demand vs Malinvestment

Some more thoughts on unemployment, this time on the differences between consumption and investment. Continue reading

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Buttressing Employment May Have Long-Run Consequences

Tyler Cowen argues that artificially sustaining those employed in otherwise unprofitable sectors of the economy is easier than finding them new jobs. While superficially true, this ignores the greater argument that by doing so one is slowing the necessary reallocation of labor and the necessary extension of the division of labor. The focus should be on productivity, not unemployment. Continue reading

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125,000 Jobs Lost

One of the obstacles to employment is the lack of strong, sustained growth. It is entrepreneurship and investment which leads to employment, not employment which leads to entrepreneurship and investment. Continue reading

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DeLong on Public Expenditure and Hayek

Brad DeLong writes on freshwater and Austrian macro, baffled at why he still needs to explain why public spending is pertinent in current economic conditions. He never paused to think that maybe his own case is unconvincing. Continue reading

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Structural Unemployment and Business Cycles

High natural unemployment is a product of poor labor policy, and not of markets or the length of recessions. Continue reading

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DeLong on Chronic Unemployment

Chronic unemployment has little to do with business cycle theory. It has more to do with labor policy and wages. Continue reading

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