Friday, November 8, 2013

A Krugman Screed On Unemployment

Paul Krugman is out with a terrible piece this morning on unemployment, wherein he calls for more government spending to cure unemployment.

This means he ignores the fundamental fact that:

Employment markets like all markets clear. That: 1.Unemployment can only remain high because people are given alternatives, e.g. unemployment  payments, to employment. 2. Regulations, such as minimum wage laws, prevent others from entering the jobs market.

Government spending does nothing but distort spending away from the productive private sector. Again, markets clear.No role for government needed.


  1. Never realized unemployment did not exist until govt decided to create unemployment insurance. Learn something new every day.

    1. Yep. Unemployment payments are up and the criteria for getting them has gone down, among other causal factors created by our illustrious masters.