Length of Unemployment is Worst Since World War II

Middle Class Political Economist: Basics: Length of Unemployment is Worst Since World War II.. (HT Brad DeLong.)

The key graph:

Assuming the economy is “trying” to reach equilibrium, this suggests that it “wants” less workers.

If that is a secular trend, as suggested by the steadily lengthening jobless recessions since the 80s,

…we’re faced with the need for a new structure wherein people’s claims to a decent share of the pie are not linked to their ability (luck) in finding well-compensated employment. Alternative means are necessary to provide widespread prosperity and the widespread demand that gives producers the incentive to expand and innovate.

Have I mentioned expanding the EITC lately, and indexing it to unemployment?

Cross-posted at Asymptosis.

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