[Magdalen] A Busy Day Plus

[Jim Guthrie]

From: ROGER STOKES

>Jim you sound in good form.

Thanks -- I generally feel pretty good.

>It is an important (but generally neglected) point that those on unemployment 
>benefit need to be able to afford to update their skills to be employable 
> >again.  That is in the interests of everybody.

It's typical in the U.S. that benefits are cut for people going back to 
school -- but that's generally not for true retraining purposes.

One of the legacies of the fast disappearing "Job for life" that was so typical 
of the manufacturing economy is that people got out of the habit of moving on 
when times got tough -- like American Blacks in the South and the great 
migration northward in the 1930s-40s, or the Okies to California and the like. 
Government policies in housing encouraged people to put down "roots" by 
subsidizing all home purchases, leaving people with far less flexibility when 
the factories close.

I also find the politicos who say they'll "bring back manufacturing jobs" to be 
pandering and ignorant as to the realities of the modern economy. Prof.. Aghions 
talk reinforced that idea, at least for me. He had some interesting thoughts on 
the situation in France (which has a lot of similarities) vs Sweden and Finland 
which have worked out many of these modern economy issues (free tuition through 
grad school anyone?).

Don’t tell the Republicans, but Sweden actually increased tax revenues by 
lowering the top rate from 80% to 57%. OTOH, nearly everyone pays the 57% <g>. 
It appears to be almost a "flat tax."

Cheers,
Jim Guthrie