Casey Mulligan and a Trip to the Supply Side

Casey Mulligan takes another shot at explaining the downturn as a decision by millions of people to stay at home and collect government benefits (joining the 47 percent) rather than work, in response to the increased generosity of programs like unemployment insurance and food stamps under the Bush and Obama administration. I don't have time to deal with all the points that Mulligan raises, but it is worth focusing on one implication of his story.

Not everyone was in a position to gain from th...