comes the big contraction in 1929 and ....
"....Wages fell as the economy was slumping, but bounced back thereafter even though unemployment was high"
". Applying modern arguments to these data one could easily have concluded
that the economy was near capacity in, say, 1939..."
"..... in fact many economists argued at the time that most unemployment was structural, due to the mismatch between skills and the requirements of the modern economy, and could not be cured with more demand."
"But then came massive fiscal stimulus in the form of rearmament and war — and it turned out that there was plenty of slack in the economy, and American workers were just fine."
yup no structural unemployment
come war
full job force remobilization...
and then sum
plenty sum
riviters out of Roses
only required adequate spending ...
but notice post jan 1936 wages go on a second boomer until pole axed
does wage rate control
trump full remobilization of the potential job force ?
what else led to this macro policy contrived
sharp and deep re-contraction
this is the episode most like the recent stunted recovery
"But then came massive fiscal stimulus in the form of rearmament and war — and it turned out that there was plenty of slack in the economy, and American workers were just fine."
yup no structural unemployment
come war
full job force remobilization...
and then sum
plenty sum
riviters out of Roses
only required adequate spending ...
but notice post jan 1936 wages go on a second boomer until pole axed
does wage rate control
trump full remobilization of the potential job force ?
what else led to this macro policy contrived
sharp and deep re-contraction
this is the episode most like the recent stunted recovery
