By Arnold Kling
What scars will the Great Recession leave? We are already seeing some. Americans are moving less than at any time since World War II, reports demographer William Frey of the Brookings Institution. People are tied to existing homes, can’t get loans for new ones and won’t move without job commitments, Frey says. Only 1.6 percent of Americans are now moving across state lines, half the rate of a decade ago.
He points out that a real recovery will come from people embracing change and starting new businesses, but in today’s environment people seem more fearful. In my view, this suggests that if people are waiting for government stimulus, this will promote passiviity rather than a real economic recovery.
[UPDATE: Dave Schuler offers some pushback to the thesis that youth and entrepreneurship go together.]