Friday, January 29, 2010

 

The Unemployment Game Show

Tony G. apparently has nothing better to do than send me funny videos. Maybe he's not in the labor force?




Comments:
Not to defend the government, but aren't Austrians vulnerable to this exact criticism? That is, a lot of the people considered "unemployed" today, would *not* be considered unemployed in the relevant sense by Austrians ("involuntary employment") -- they'd use an estimate yielding an even lower result!

For example, if you're an out-of-work engineer that won't take a $7/hour starbucks job despite it being available, well, you don't count toward the relevant unemployement rate Austrians use as a metric.

(I remember asking you about this on antistate years ago, but Paul Birch intervened and defused the question by pointing out the multiple negatives...)
 
This comment has been removed by a blog administrator.
 
But Austrians don't use math, Silas...

Hmm that's an interesting question. Well, for one thing (as you note) we need to distinguish between voluntary and involuntary unemployment; so the Austrian would still admit that the laid-off engineer who's holding out for a better job than Starbucks, is still unemployed.

You know I'm not really sure what the official canon is on this. Even after a boom-bust cycle, presumably there are a bunch of people who are "voluntarily" unemployed in that sense, and the problem with the boom-bust cycle is that it lowers available wage rates on prospective jobs, so that more people choose to be unemployed.
 
Post a Comment

Subscribe to Post Comments [Atom]





<< Home

This page is powered by Blogger. Isn't yours?

Subscribe to Posts [Atom]