Comments for Affirmative Action for Mexico in the NYT at http://www.cepr.net , comment 1 to 1 out of 1 comments http://www.cepr.net Sun, 19 May 2013 23:50:19 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/affirmative-action-for-mexico-in-the-nyt#comment-1242 The economic growth theory of Bounceback from Slackback by Baker is a phenomena typically missed by MSM which wants to report high or low growth and come up with reasons afterward to justify it. The lower the starting point of growth in terms of capacity and labor utilitization, the more available are idle resources to bounce back from slack use, which is not true net growth in terms of new resources, but rather an increase in demand for existing resources. To miss this is like saying a car goes from 0mph to 50mph in 7 seconds without reporting that maximum efficiency is achieved in one more second at 60mph, which appears as justification of a 10% underemployment rate of the car, or in a macro context a justification that 10% of all cars that should be driven to avoid waste are instead idle and unemployed altogether. The car only looks like it's going fast due to increasing returns starting from 0mph, but compared to other cars in other countries at other times running at a 96% utilization rate and only 4% car unemployment, it's not going fast at all in terms of output efficiency. Bounceback from Slackback has to be ignored by MSM because otherwise it looks like Keynesian socialism instead of good old fashioned free trade that always ticks along at a steady pace of full employment equilibrium when left to its own devices free of government interference. Stupid liberals. - izzatzo Thu, 01 Jul 2010 01:28:43 +0100