I wasn't disagreeing with raghu on this. Besides, the last issue of LBO used a version of Okun's "Law" (which is admittedly noisy and changes over time).
On Wed, Jul 31, 2013 at 9:49 AM, Doug Henwood <[email protected]> wrote: > > On Jul 31, 2013, at 12:46 PM, Jim Devine <[email protected]> wrote: > >> the two are linked, by Okun's "law." If the market economy (as >> measured using the old GDP) grows fast enough in real terms to cancel >> out the normal increase in unemployment due to labor force growth and >> labor productivity increases, the official (U3) unemployment rate >> falls. If it grows slowly or falls, U3 rises. > > The relationship is noisy and changes over time. Raghu's point is a good one. > GDP is useful but what matter more are income and the material benefits it > buys. > > Doug > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l -- Jim Devine / "Reality is that which, when you stop believing in it, doesn't go away." -- Philip K. Dick _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
