Philip Greenspun reviews U. of Chicago economist Casey Mulligan's book, The Redistribution Recession: How Labor Market Distortions Contracted the Economy. Here's the TL;DR:
With 363 pages of analysis and mathematical models, Mulligan shows that essentially all of what we have observed since 2009 can be explained by the following:
- many able-bodied Americans will not work if they have a reasonably attractive alternative
- the federal government, starting in 2009, made not working much more financially rewarding for tens of millions of working-age adults . . .
This is an important book and deserves to be read by anyone interested in the U.S. economy. There is a lot of interesting information still accessible even to those whose econ/math background isn’t adequate for fully appreciating Mulligan’s mathematical model.