Russ Roberts at Cafe Hayek and EconTalk talks with Casey Mulligan of the University of Chicago on Mulligan’s book in which a core thesis is that incentives such as a generous welfare state and extremely generous unemployment benefits have contributed to (caused) the duration and severity of the recent recession.
Amazing what incentives will do. Amazing how many people just don’t get it.
PS: While listening to Casey on EconTalk ponder whether the tax code is an incentive not to work and then ponder whether raising taxes (on anybody) is a recipe for macroeconomic success or failure. (And further ponder whether current account deficits and current government debt is not anything more than future taxation.)