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Great Depression and workforce...

Understanding the Great Depression Blogging: Labor Input and Its Trend

The immediate answer to questions about Lee and Ohanian is that all the institutions they blame for high structural unemployment during the Great Depression were still there after World War II--yet no high structural unemployment then at all.

The hasty answer to Lee and Ohanian is that they are playing two jokers:

(1) They define "before Roosevelt" as the average of 1930-32 rather than as 1932.

(2) They assume that all of the declines in hours of work per week is due to deficient demand rather than to a much-desired increase in the bargaining power of workers who then choose to bargain for more leisure.

WWII and the Great Depression

I recently posted on a Reason segment where they use a strawman argument against new New Deal supporters.

Strangely enough, Jason Pye responded by stating that it was World War II that ended the Great Depression.

I wonder if it was the price controls? Or the wage controls? Or the rationing?

As Political Theorist,Sheldon Wolin, noted in his book Democracy inc.

"the economy was controlled by government "planning" directed toward prescribed production goals, prohibited from producing most consumer goods, and subjected to central allocation of vital materials. The labor force, for all practical purposes, was conscripted: its mobility was restricted, wages and prices were fixed, while collective bargaining was put on hold. Food and fuel were rationed... (p. 106)"

I'm not sure how this fits in with any "free market" positions that are out there. But if anyone knows feel free to shoot it my way.

To top it off he states:

Why else would anyone say that we need another New Deal if they recognize that it was a failure?

Umm can anyone say Reagan, Reagan, Bush, Bush... we've had years of economic decline--coming from tax cuts, deregulation, and lax regulation...

Why else do I talk to people who say--what happened to the economy that I grew up with.

To say I don't follow either the logic or the history lesson would be an understatement.

Though I do enjoy the fact the he agree's with Paul Krugman about World War II ending the depression.