Prof Raghuram Rajan writes:
- Government spending—especially on unemployment benefits, aid to states, and some construction projects—probably helped avert a more wrenching downturn, but continued red ink worries households, which are also trying to rebuild savings and reduce debt after a spending binge.
- Instead of constantly trying to boost spending and potentially creating problems for the future, a more sustainable way to improve job growth is to facilitate the “re-skilling” of the unemployed, especially those who were in construction-related jobs. Eventually, better labour force supply will create healthier and more sustainable demand.
No comments:
Post a Comment