Friday, June 08, 2012

Jobless Recovery

I started drawing goofy people then tried to make an economic idea in a dialog box.  This is the result.  At the current time, GDP is growing at 2.2% while the unemployment sticks at 8.2%.  How can the economy be growing when the unemployment rate is 3% higher than the natural rate.  There must be capital being substituted for labor.

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