Saturday, August 14, 2010

There is much more of interest here. I would describe this as a major, still uninternalized lesson of the recent crisis, with its roller coaster-rapid dips. In a highly specialized modern economy, it is much easier to prevent jobs from being destroyed than to create them again, at least assuming those are "good" jobs in the first place. (Yes, people thought they knew this but it's an even stronger difference than had been believed.) The U.S. auto bailout, for instance, worked better than did most of the stimulus program.
Tyler Cowen on Nicholas Kulish at the NYT, on recent German economic success and expansion of a program to keep workers employed, rather than dealing with them once they'd lost their jobs

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