AG on globalization

Brad DeLong delong at econ.Berkeley.EDU
Wed Aug 30 09:33:38 PDT 2000



>[Layoffs promote employment, says AG. "The second derivative of
>output per hour still appears to be positive." Next year in Jackson
>Hole!]

Well, Alan Greenspan said that employment-at-will promotes cost savings from taking advantage of technological change, that faster adoption of new technologies means higher productivity growth, that higher productivity growth means faster warranted real wage growth, that faster warranted real wage growth means that the sustainable average unemployment rate that keeps actual real wage growth equal to warranted real wage growth is lower...

Hence, yes, Alan Greenspan said that layoffs promote employment...

A decade ago I would have pooh-poohed the argument as theoretically possible but extremely unlikely in practice. But now I find it more convincing. Perhaps the experience of the past decade? Perhaps something they put in the water at Jackson Hole?

In any event, I recommend the Colter Bay Campground. Lots of large megafauna around. Easy access to the bald eagle habitat along the oxbow bends of the Snake River. Reasonably nice support services. Beautiful views. Affordable (which Jackson, WY is not--three-figure prices at Motel 6--my father says that Jackson, WY reminds him of what the Upper East Side would be like if the residents only had more money). And close to the Jackson Lake Lodge...

Brad DeLong, who saw three grizzly bears swimming the Yellowstone River...



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