In an article in the Wall Street Journal about the effect
of automation on jobs, Boston University economist
James Bessen was quoted as saying that the problem is not
“mass unemployment, it’s transitioning people from one
job to another.”
a. What does “transitioning people from one job to
another” entail? During the transition period, what
type(s) of unemployment would describe these people?
b. The article noted that “other countries devote more
resources than the U.S. to cushioning and retraining
displaced workers.” What type of policies do governments use to support displaced workers? What are the
benefits and the costs to making the policies to cushion displaced workers more generous?
Source: Christopher Mims, “Automation Can Actually Create More
Jobs,” Wall Street Journal, December 11, 2016.