Blinder Has Blinders On

Alan Blinder has an op-ed in the Wall Street Journal that reveals in stark terms the irrelevance of modern macroeconomics. Blinder is a Princeton economics professor and former Vice Chairman of the Federal Reserve. He is often trotted out by the Democratic Party to defend big spending by Congress or inflationary monetary policy by the Federal Reserve. He's back on the podium this morning asking:

"What might a real job-creation program look like?"

Dig this answer:

"Creating jobs costs money -- whether it's via tax cuts or more spending." Could have fooled me. Would it really be possible to spend more than Blinder and his allies have done in the past three years.

Blinder, like most other Democrats, believes that the cost of labor is irrelevant in the decision to hire. So long as you believe cost doesn't figure into the hiring decision, you will never be able to understand our current unemployment problems.

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