Saturday, July 9, 2011

Pardon me, but you can take your Structural Unemployment Theory and SHOVE IT!

Attack of the Obama Tea Party GOP Economic Zombies!

It's not fucking structural. Krugsandra explains:
Why is unemployment remaining high? Because growth is weak — period, full stop, end of story. Historically, low or negative growth has meant rising unemployment, fast growth falling unemployment (Okun’s Law).

And if we had a structural unemployment problem, we’d be seeing labor shortages and rising wages. We aren’t: wages actually fell last month.
But since our Galtian Overlords have convinced America that we're going to grow our way out of recession and unemployment through budget cuts (expansionary austerity, aka GOP Economics Zombie Lie #28) we're stuck trying to solve a very solvable problem with the wrong fucking tools.
But I’d add a second factor: the truth about our slump — that we know how to fix it, that we could fix it in a year if we had the political will, but that bad ideas and worse politicians are standing in the way — makes people uncomfortable. They want to believe that we have a deep problem, and that’s why we’re in such a mess.

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