Monday, February 22, 2010

Creative Destruction and Structural Unemployment In this Recession

I would not put a lot of faith in this point estimate, but according to The Wall Street Journal piece entitled “Many Jobs Gone Forever, Economist Say” a quarter of the jobs lost in the recession are not coming back.

This is the destruction part of what Schumpeter was talking about. The creative part is putting all those people into new, different, and on average, better jobs. There’s not much confidence in that happening right now, but there never is.

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