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Given what we have learned this semester and what you have seen over the last year, I would like your analysis of this article: https://www.nbcnews.com/business/economy/there-are-now-more-jobs-available-pandemic-so-why-aren-n1263669

I want you to consider the pandemic, labor markets, what we have learned about prices and incentives…. the whole macro environment. I read this article tonight and it sparked about a hundred questions to me. The quotes are obviously cherry picked, but I don’t doubt that they represent the many different views out there in the labor market right now.

Pay particular attention to the parts about government intervention:

“It’s time to build our economy from the bottom up and from the middle out, not the top down,” President Joe Biden said in remarks when when he introduced the American Jobs Plan on March 31.

The $2 trillion infrastructure proposal includes $100 billion to fund workforce training programs. It would also call for up to an additional 2 million apprenticeship slots. The Department of Labor’s Dislocated Workers Program would also receive $40 billion and $12 billion for women and minorities in workforce development.

“More investment is required to train Americans for good-paying jobs across industries ranging from construction to energy to manufacturing to technology to caregiving,” according to a White House statement released in February.

Is this a good idea? Knowing what you have learned about government spending and intervention in the macroeconomy, do you think this will be effective? Why or why not?

Because I’m bored of papers, let’s make it a PowerPoint Just to mix things up.

To me, answering this question is much more impactful and important than any multiple choice test I could write for a final exam. So think of this as your final exam. This is your chance to shine as newly minted macroeconomists!

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