Further on the problem of unemployment

Blogging suffers. At least for me it does. There is the problem of unemployment as seen by an economist who has a tenured job. And then there is the problem seen close up by the out-of-work-economist.

As an economist, I am horrified by the capacity utilization rate and unemployment rate prevalent in the USA today. This is the same essential irrationality that Keynes was exercised about in the Great Depression.  How can machines and plant lie unused and at the same time willing workers be out of a job?  What is the real reason for this apparently irrational state of affairs?  Does some small subset of the adult population benefit from this state of affairs and hence it persists? 

Anyway, have taken the first baby steps in labour markets, and am keeping my fingers crossed -can’t say more here, the magic will evaporate.

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