Sunday, April 12, 2009

Larry Summers, in his own words: (h/t AB)
What Causes Long-Term Unemployment?

To fully understand unemployment, we must consider the causes of recorded long-term unemployment. Empirical evidence shows that two causes are welfare payments and unemployment insurance. ...

First, government assistance increases the measure of unemployment by prompting people who are not working to claim that they are looking for work even when they are not. ...

The second way government assistance programs contribute to long-term unemployment is by providing an incentive, and the means, not to work. ...

Another cause of long-term unemployment is unionization. High union wages that exceed the competitive market rate are likely to cause job losses in the unionized sector of the economy. Also, those who lose high-wage union jobs are often reluctant to accept alternative low-wage employment. ...

There is no question that some long-term unemployment is caused by government intervention and unions that interfere with the supply of labor.
That was written sometime in the last four years (no publication date is evident, but inferred from dates mentioned in the essay).


What an ass.

By Anonymous Anonymous, at 4/12/2009 6:43 PM  

Can't argue with that, can we? And then of course there's free oxygen, the presence of which surely allows some people to loll about when they could be working for it. Something should be done about all that air.

By Anonymous eb, at 4/12/2009 8:03 PM  

If Larry can get a part-time job while serving as Harvard's president, why can't these loafers on welfare and unemployment compensation? After stepping down as Harvard's president, in addition to his full time professorship, he worked part-time, one day a week, earning $100K+ for that one day. Why can't these loafers on welfare and unemployment compensation do likewise?

By Blogger Shag from Brookline, at 4/13/2009 2:54 AM  

That's change we can believe in.

By Anonymous Mart, at 4/13/2009 6:42 AM  

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