DeLong Smackdown Watch: Structural Unemployment Edition
Anon writes:
Brad DeLong: Hysteresis and the American Unemployment Problem: For three f%@&ing years I have been telling you there was a structural unemployment problem which you have been vigorously denying. Now you are posting this without even acknowledging how clueless you were?
I would plead that two years ago we had no structural unemployment problem, that one year ago we had a tinge of a structural unemployment problem, and now we have a small structural unemployment problem--1.0% of the adult population more than frictional unemployment was back in 2006-7.
And it is growing: each month, each cyclically-unemployed person has an 0.3% chance of turning into a structurally-unemployed person.
