Tuesday, January 11, 2011

Skill development for US economy

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