Filed under: Economics
Here’s an unexpected statement from Megan McArdle:
To me, unemployment is a far more important indicator than GDP. Given how rich America is, the misery from losing a job far outweighs a few percentage points of variation in incomes.
I agree. That’s why we need more government stimulus spending, ultimately paid for through higher taxes on rich people after the economy recovers. If Megan has a better idea for increasing demand at a time when consumers’ and businesses’ propensity to spend has collapsed, I haven’t seen it.
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