Unemployment Is Cyclical: Taking Jeffrey Sachs to School

Jeffrey Sachs has played a useful role in challenging the economic orthodoxy in many areas over the last three years. However when he tries to tell us that the current downturn is structural not cyclical he is way over his head in the quicksand of the orthodoxy.

Let's start with his simple bold assertion:

"Consider the new U.S. unemployment announcement. If you are a college graduate, there is no employment crisis. 72.7 percent of the college-educated population age-25 and over is working. Th...