Advancing a Free Society

Arena: Is Obama’s America like Greece?

Friday, May 7, 2010

Politico:  Will the Greek debt crisis spread? Can Republicans pound the debt issue to prevent new federal spending?

Robert Zelnick:  The news is politically neutral, possibly even a bit negative, but rather good with respect to the economy.
Often during a period of repression the jobs created column will reflect a net loss in new jobs but a decline in the unemployment rate. That's because the latter figure includes so-called "discouraged" workers----those so certain they will not find work that they have quit trying. It is ironic that an improving economy, where jobs are becoming more plentiful, gets hit with a high unemployment rate while in an economy where jobs are scarce, the unemployment rate fails to portray the improvement.

Of course, some would also argue that programs like extended unemployment benefits designed both to cushion the impact of unemployment can sometimes discourage workers from returning to their jobs--or new ones--because their marginal gain in income is so slight.

Continue reading Robert Zelnick in Politico’s Arena…