Presentation by Professor Joseph Stiglitz at CERGE-EI on October 11, 2011, titled "Restoring Growth and Stability in a World of Crisis and Contagion: Lessons from Economic Theory and History".
He makes a compelling arguement in pointing out the problem of transition from manufacturing to services. To respond to the first two posts, the reason why this transition may seem different than that of the Great Depression, was that the GD was of a physical nature, while this transition is of an educational and training nature. This transition may take longer due to the time it takes to train for the demanded jobs. In short: mobility between jobs is not always of a locative nature.
The only way I can think of the mobility trap becoming a problem during this transition is when there is a big difference in the development of a nations cities - some growing (service centers), some declining (old industrial centers). Is this really a relevant factor?
I've got a question concerning the mobility trap during transitions caused by the fanancial problems of people who loose their jobs or a significant part of their income. While I see the relevance of that for a society in transition from an agricultural to an industrial economy I don't really get why the mobility trap is a real problem for the tranistion to the service sector. Both industry and services usually take place in and around cities.
He makes a compelling arguement in pointing out the problem of transition from manufacturing to services. To respond to the first two posts, the reason why this transition may seem different than that of the Great Depression, was that the GD was of a physical nature, while this transition is of an educational and training nature. This transition may take longer due to the time it takes to train for the demanded jobs. In short: mobility between jobs is not always of a locative nature.
pasholnaxui10 1 week ago
Great explanation of how productivity increases can make things worse rather than better.
cazal607 1 month ago
The only way I can think of the mobility trap becoming a problem during this transition is when there is a big difference in the development of a nations cities - some growing (service centers), some declining (old industrial centers). Is this really a relevant factor?
natanulsiref 2 months ago
I've got a question concerning the mobility trap during transitions caused by the fanancial problems of people who loose their jobs or a significant part of their income. While I see the relevance of that for a society in transition from an agricultural to an industrial economy I don't really get why the mobility trap is a real problem for the tranistion to the service sector. Both industry and services usually take place in and around cities.
natanulsiref 2 months ago