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Unformatted text preview: spending on machines and software, while slower to add people to run them. Part of this is the old story of substituting capital for labor. But a combination of temporary tax breaks that allowed companies in 2011 to write off 100% of investments in the first year and historically low short- and long-term interest rates have pushed that process into overdrive. Hiring, meanwhile, is too slow to bring the unemployment rate down rapidly. Employers have added workers at a monthly rate of 142,000 for the past six months, half the pace needed to significantly reduce unemployment, which is now at 8.5%." The power of a simple idea: When the technology for network carriers got better, governments were wondering how to allocate spectrum rights to companies. Maybe give them away for free? Give them to the largest operators? Some economists had a simple idea which had a huge impact: to make a market. Here is the account by Charles Plott, in the book "Better living through economics": &...
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This note was uploaded on 02/07/2012 for the course ECON W3213 ECON W3213 taught by Professor Xaviersala-i-martin during the Spring '10 term at Columbia.
- Spring '10