A critical response to Jason Furman's "Post-Neoliberal Delusion and the Tragedy of Bidenomics," that dives into both the administration and ideas of the past 4 years.
This is all so dumb—we hemorrhaged manufacturing jobs to China from 2002-2009 in the aftermath of China into the WTO!! From 2005-2008 CPI was significantly elevated peaking at 5.6% in July 2008 because of high energy prices due to the commodity super cycle what was led by China!! The Global Financial Crisis happened in that context!! The GFC happened because lower class disposable income was being degraded by inflation while the China Shock was undermining the job market!! Neoliberalism failed!! WTF is Furman even talking about??
Search fractions do not cause monopsony power in labor markets (though job heterogeneity might). Every search model that has monopsony power in it generates it by assuming 1) perfectly inelastic demand at firm level, 2) fixing the number of firms in the market, effectively shutting off the two margins of adjustment. It's assuming perfectly inelastic labor demand, not search frictions.
“…put it exactly into this evolutionary frame, where people had one set of opinions in the 1990s and evolved them to face the challenges as they stand out here in the 2010s-2020s…. Who is going to put Reed, Yellen, and Gensler in a room and yell at them for having no clue about 1990s policymaking?”
This x1000. However, Furman + Summers have shown their willingness to remain stuck in the 90s when faced with contradictory facts.
Finding Rortybomb again, after years of reading the good old blog, and then trying to find it via Roosevelt, brings me some joy as I find that Mike Konczal is again sharing with a wide audience.
And, like many others, when I read Thurman's take on the Biden administrations work, I was pretty well shocked. I appreciated Jared Bernstein's reply, but herein I find a reply that actually levels the playing field by filling in the relevant spaces that were previously left in the dark. Reminding us all that those damn details ultimately strike back and criticism that's off base ends badly.
This is all so dumb—we hemorrhaged manufacturing jobs to China from 2002-2009 in the aftermath of China into the WTO!! From 2005-2008 CPI was significantly elevated peaking at 5.6% in July 2008 because of high energy prices due to the commodity super cycle what was led by China!! The Global Financial Crisis happened in that context!! The GFC happened because lower class disposable income was being degraded by inflation while the China Shock was undermining the job market!! Neoliberalism failed!! WTF is Furman even talking about??
Search fractions do not cause monopsony power in labor markets (though job heterogeneity might). Every search model that has monopsony power in it generates it by assuming 1) perfectly inelastic demand at firm level, 2) fixing the number of firms in the market, effectively shutting off the two margins of adjustment. It's assuming perfectly inelastic labor demand, not search frictions.
“…put it exactly into this evolutionary frame, where people had one set of opinions in the 1990s and evolved them to face the challenges as they stand out here in the 2010s-2020s…. Who is going to put Reed, Yellen, and Gensler in a room and yell at them for having no clue about 1990s policymaking?”
This x1000. However, Furman + Summers have shown their willingness to remain stuck in the 90s when faced with contradictory facts.
Finding Rortybomb again, after years of reading the good old blog, and then trying to find it via Roosevelt, brings me some joy as I find that Mike Konczal is again sharing with a wide audience.
And, like many others, when I read Thurman's take on the Biden administrations work, I was pretty well shocked. I appreciated Jared Bernstein's reply, but herein I find a reply that actually levels the playing field by filling in the relevant spaces that were previously left in the dark. Reminding us all that those damn details ultimately strike back and criticism that's off base ends badly.