Mike Gurstein just posted a piece on the closure of Devco in Cape Breton
Canfutures, in which are to be found these two paragraphs, describing
frictions in the labour market and wealth effects which Krugman claims not
to exist.
Mike H
>The emotion that greeted Premier Russell MacLellan Friday in his
belated trip Sydney Mines was raw. Miners have good reason to be
frightened. Most will not qualify for pensions, despite work records
stretching back a quarter century.
> They have little education and few marketable skills should they
decide to move away, and many incumbrances that make moving
impractical. Most own homes that would not fetch enough for a down
payment in the robust real estate markets where jobs are said to be
plentiful. They have family and community ties that make it possible
to live in Sydney Mines on incomes that would not sustain them
elsewhere.
