Archive for the ‘New Posts’ Category

The Pivot?

June 13th, 2011

In comments made today, the President makes an important distinction between day-to-day problems (that’s the lack of enough jobs) and structural problems (that’s the unsustainable budget path).  Then he gently leans into another round of a payroll tax cut, an important way to avoid an economic air-pocket next year (since the current policy sunsets at… Read more

Another Explanation for the Productivity/Employment Split

June 12th, 2011

Recall the discussion and pictures from this post.  I’ve updated the graph, btw, swapping out total employment for private (leaving out government) since that’s comparable to the coverage in the productivity series. Source: BLS There’s another reason why productivity may be diverging from employment: mismeasurement of productivity growth of a particular type that would show… Read more

No Virginia, There Is No Such Thing As Expansionary Contraction

June 10th, 2011

A lot of people have recently asked me why we’re stuck in this policy vise-grip, targeting spending cuts and deficit reduction when we should be targeting job growth. There’s no single perp here—there are numerous explanations, including politics and ideology of course, the changing views of the electorate on the effectiveness of Keynesian interventions, and… Read more