Worth a Look
An excellent summation of why the pessimists on employment are wrong–at least in the short term. Deep recessions routinely cause excessive job loss, as businesses over-react to near term perils; dramatic productivity increases, as need for labor exceeds businesses worst fears; and lagging but very strong rebounds in employment as GDP rises and productivity inevitably drives employment.
Of course this does not happen if GDP does not rebound. But the notion that GDP can rebound without an eventual surge in employment never turns out to be true.
Tags: Andrew Redleaf, Richard Vigilante, Whitebox
