The Economist has a good section up where various guests (generally professors and experts from around the country) post answers on a theme. One of the current ones is on "What's wrong with America's labor market?" and the answers range from a discussion of how mortgage uncertainty hurts the entire workforce by decreasing our liquidity as a nation to an argument that frankly there hasn't been a recovery yet.
The sections are short, quick reads and very thought provoking. What do you make of the various points? IS there any one that seems most relevant to our class? In "Housing problems leave workers stuck," the author makes a suggestion at the end that seems like it would be almost impossible politically, but may be the right choice economically... Is it one that's worth exploring?
This is a very interesting article as I had never thought about people who need to relocate for new employment but are anchored by large mortgages. This is very unfortunate as it leaves these people with very few options as they are neither able to seek new employment nor able to pay their current mortgages while unemployed.
ReplyDeleteI liked Alberto Alesina's answer. He also stresses the role of mobility in our workforce, and how our houses are tying us down. "Also they may explain why government spending thrown at the economy in an indiscriminate manner, like the stimulus package, has a limited effect in reducing unemployment." Interesting view!
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