A few days ago, I read an authoritative-sounding paper in The American Economic Review, one of the leading journals in the field, arguing at length that the nation’s high unemployment rate had deep structural roots and wasn’t amenable to any quick solution. The author’s diagnosis was that the U.S. economy just wasn’t flexible enough to cope with rapid technological change. The paper was especially critical of programs like unemployment insurance, which it argued actually hurt workers because they reduced the incentive to adjust.Read the rest at The New York Times | Opinion
O.K., there’s something I didn’t tell you: The paper in question was published in June 1939.
Easy Useless Economics
by Paul Krugman | Professor of Economics at Princeton University