Monday, January 30, 2012

Stiglitz on the Great Depression and the Great Recession

Joseph Stiglitz argues that the Great Depression (1930s in the US) and the Great Recession (now in the US) have a common cause in maladjustment to structural change in the economy. In the 1930s it was an overhang of the shift of employment from farming to manufacturing and today from manufacturing to the service sector. It's an interesting thesis. Odd that he omitted some important sectors - retail/wholesale, transport, & government admin from his list of service sectors. Or are many service employees becoming obsolete in advanced economies?

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