by the Sandwichman
Brad DeLong worries and worries about the "jobless recovery"
The "jobless recovery" is an oxymoron. It also stands the lump-of-labor fallacy on its head. Instead of a "fixed amount of work to be done" there is a growing amount of work to be done by a fixed number of workers. Well, the remedy is obvious -- or would be obvious but for the precision-engineered blinkers worn by almost all economists these days: "So long as there is one man who seeks employment and cannot find it, the hours of work are too long." Who said that? Why the great Keynesian himself, John Maynard!
Wait! No! That was Samuel Gompers. What Keynes said was:
"The full employment policy by means of investment is only one particular application of an intellectual theorem. You can produce the result as well by consuming more or working less. Personally I regard the investment policy as first aid... Less work is the ultimate solution."
So, the first Obama stimulus was first aid. Let's assume the patient is stabilized. The economy is no longer "falling off a cliff". WHAT WOULD KEYNES DO?
Jobless or work less?