Saturday, November 6, 2010
Economists Share Nobel for Studying Job Market
This is an extremely interesting article written about three men who won the 2010 Nobel Memorial Prize in Economic Science. The article related well to our class discussion talking about how fiscal and monetary policy were needed to speed up job growth. The article explains that the slower things happen the more workers are discouraged and people lose their skill sets relating to the jobs they once held. The article also explained how unemployment benefits in good or bad economic times can increase the amount of people unemployed. This is an idea we discussed earlier in the semester saying that the higher the unemployment benefit is the less the cost of being unemployed is.
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I really liked this article. I did not know that government had such a powerful influence in the job market. I also found very interesting their explanation about unemployment benefits.
ReplyDeleteI liked this article because it is interesting to see how much our economic understanding has grown in 40 years. It will be interesting to see how economic studies evolves and how we might be able to better react to economic fluctuations.
ReplyDeleteWe can see that unemployment benefits can indeed slow down unemployment numbers- unemployment checks being collected can give people the incentive to remain unemployed or potentially worse, become disconnected with the labor force. Also, if government spending increased, this can allow for businesses to grow; therefore, jobs will grow and the unemployment numbers will rise past the 11% range.
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