CEPR - Center for Economic and Policy Research

Multimedia

En Español

Em Português

Other Languages

Home Publications Blogs Beat the Press NYT and Justin Wolfers Get it Wrong, the U.S. Is Doing Very Well in Translating Weak Growth Into Jobs

NYT and Justin Wolfers Get it Wrong, the U.S. Is Doing Very Well in Translating Weak Growth Into Jobs

Print
Saturday, 08 June 2013 08:23

The NYT picked up a twitter comment from Justin Wolfers and told readers that the United States is lagging other countries in job creation. The blog post has a graph showing a higher rate of job growth in several other wealthy countries. The piece then tells readers that the United States is doing a poor job translating economic growth into job growth.

Actually the U.S. has been doing a very good job translating very weak growth (@ 2.0 percent over the last two years) into jobs. This is shown by the extraordinarily weak productivity growth over this period, it's just that other countries are doing better in generating jobs from even weaker growth.

Comments (2)Add Comment
More or Less, Less with More, More with Less: Those are the Questions
written by Last Mover, June 08, 2013 11:44
... translating economic growth into job growth.


When producing more with less it is essential that those producing more earn enough to buy what they produce in the aggregate to maintain full employment.

If less is produced with more it is essential that those producing less all have a job to produce sufficient total income to buy what they produce as well.

When violating these two conditions as America systematically does with either underpaid wages, underemployment, or both, it will always end up with both less growth and productivity at the same time.
the question begged
written by pjm, June 08, 2013 1:41
So if other (most?) countries with depressed output are doing better than the US, are they producing an even higher proportion of low productivity jobs?
If so, is it of concern that this is a very widespread phenomenon?

Write comment

(Only one link allowed per comment)

This content has been locked. You can no longer post any comments.

busy
 

CEPR.net
Support this blog, donate
Combined Federal Campaign #79613

About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

Archives