| If fishes rode bicycles... but they don't. Nonsense. Should I post the graphs again? The graphs clearly demonstrate increased production without a corresponding increase in employment. This is the "jobless recovery" that many columnists lament. Some graphs again: http://research.stlouisfed.org/fred2/series/PAYEMS http://research.stlouisfed.org/fred2/series/INDPRO http://research.stlouisfed.org/fred2/series/GDPC1 http://research.stlouisfed.org/fred2/series/MANEMP http://research.stlouisfed.org/fred2/series/IPMAN And recessions are generally times of low change, since it doesn't make sense to invest in labor-saving technology when labor is cheap. Labor is more expensive than ever before. Another graph for you to ignore: http://research.stlouisfed.org/fred2/series/ECIWAG According to Keynesians (e.g. Krugman), recessions are caused by labor not becoming cheap in response to exogenous shocks (due to sticky nominal wages). Do you disagree with this theory? |