When the only tool you have is a hammer, every problem looks like a nail. On Wed, Oct 5, 2011 at 8:22 PM, Eugene Coyle <[email protected]> wrote:
> Jim Devine wrote "It doesn't deal with the problem of low > aggregate demand, though (like unemployment insurance) > it may act as an automatic stabilizer." > > Jim, how do you know there is a problem of low aggregate demand? > > You see a staggering number of people unemployed and clearly you have > assumed that the problem is low aggregate demand. On what do you base that > assumption? > > What if the problem suggested by the staggering number of unemployed in the > US is not low aggregate demand, but rather an excess supply of labor > relative to the appropriate aggregate demand? > > If you were told that that is the problem that the macro level, what would > your suggested solution be? > > And going back a step, what is the proper way to measure whether aggregate > demand is low, high, or just right? If there are unemployed people in > numbers above some conventional rule, do you conclude automatically that > aggregate demand is low, without consideration of any other thing? > > Or should aggregate demand be compared with a measure of natural resources > and or pollution sinks? > > Please tell me how you know whether aggregate demand is low, high, or just > right. > > Gene Coyle > > > unemployment insurance) it may act as an automatic stabilizer." > > > It doesn't deal with the problem of low aggregate demand, though (like > > unemployment insurance) it may act as an automatic stabilizer. > On Oct 5, 2011, at 7:31 PM, Jim Devine wrote: > > > Sean Andrews wrote: > >> So I realize that there is some intense debate about this--and I know > >> I could search the archives to find out what it is about--but what, in > >> short, is wrong with this kind of plan, at least as a short term > >> measure? > > > > there's nothing wrong with it. It's also not especially wonderful > > either. Job-sharing of this sort is a kind of unemployment insurance. > > It doesn't deal with the problem of low aggregate demand, though (like > > unemployment insurance) it may act as an automatic stabilizer. It does > > lower _measured_ unemployment (as usually measured). > > -- > > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your > > own way and let people talk.) -- Karl, paraphrasing Dante. > > _______________________________________________ > > pen-l mailing list > > [email protected] > > https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Sandwichman
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