But Narayana Kocherlakota Was Supposed to Be the Really Smart and Reality-Based Minnesota Economist!

This was something that John Stuart Mill and Jean-Baptiste Say had gotten right in 1829.

Our problem is not that there is a shift in demand from construction to manufacturing, and we have to move workers from construction to manufacturing. Our problem is that there has been a shift in demand from currently-produced goods and services to safe high-quality assets and that as a result workers in goods-and-services-producing industries have been fired. There is no counterbalancing sector in...