"A high level of unemployment is a persistent problem of the American economy. During the past 20 years, the average rate of unemployment exceeded 4.5%. In only one post-War year (1953) did unemployment drop below three per cent." --Martin Feldstein, "The Economics of New Unemployment"; _Public Interest_; pg 3; Number 33; Fall 1973.
Yes, I know it says "exceeded" 4.5%, implying still higher. But I read it as 4.5% being the floor.
Now, today, in the Dallas Morning News, it says "Jobless rate persistently low in Texas" pg D1:5; Charlene Oldham.
"The Texas unemployment rate last month was 4.5 percent..."
Now, my question for the economists on this list is why is 4.5% high unemployment in 1973, and is low in 2000?
Ohhh. I think I get it. The unemployment problem has been solved! Hooray, hooray.
So that what was once high, tsk, tsk, is now low, clap clap.
I guess the solution was savaging welfare, eh?
Or, am I getting too sarcastic. Comments anybody?
-- John K. Taber