Wisdom Worth Repeating
By Arnold Kling
Workers mostly build organizational capital, not final output. This explains high productivity per ‘worker’ during recessions.
This is yet another difference between the labor force today and the labor force of the 1930’s. Back then, workers mostly produced final output, not organizational capital.
Yet another reason not to try to apply 1930’s Keynes to today’s economy. Yet another reason that we could see a jobless recovery persist until profits improve.