By Arnold Kling
Doc Merlin is among those linking to a New York Times story about manufacturers having difficulty finding skilled workers. I would love to say that I find that the story validates my views macroeconomics. Instead, I just find the story…odd.
Along similar lines, Calculated Risk points to the large numbers of long-term unemployed. Again, it might support my Recalculation Story, but it is no smoking gun.
In my latest installment, I probably should have said more about real wages in a recession. If we had to resettle a flood of refugees, then, all else equal, we probably could get more of them employed faster at lower real wages than at higher real wages. But I would not put real wages at the center of the problem.
Mario Rizzo comments on what Keynes and Hayek were arguing about in 1932, which sounds quite current.