, Columnist
Run the Economy Extra-Hot
Yes, unemployment is low. But it needs to be lower still to heal lingering recessionary scars.
More, please.
Photographer: Anthony Lanzilote/BloombergWith the unemployment rate down to near four percent, and new claims for unemployment insurance at a 48-year low, maybe the economy can't accommodate more workers without zooming out of control. That's the conventional wisdom, but a few economists, myself included, are skeptical of this narrative. We see an economy that is still well below its long-term trend line. How do we square this with such low unemployment?