Social Sciences and History / Unit 15 SSH 1423 short lesson, about 20 seconds
Growth Over Recession-Fighting
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The idea
Neoclassical economists put more emphasis on long-term growth than on fighting recessions, which they expect to fade in a few years, while growth determines the standard of living. They focus on reducing the natural rate of unemployment rather than the cyclical unemployment a recession causes.
In practice
Fix the labor market's rules, not the cycle.
Where people slip
Physical capital per person: a worker's machinery.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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