Global Capitalism and the Decay of Employment Policy

Despite the highest unemployment rate since 1933, the German central bank has declined to reduce interest rates. To do so, its spokesman asserted, would in no wise affect unemployment. Unemployment is “structural” in origin, it has nothing to do with deficient demand, its level will not respond to lower interest rates. It is attributable to a labor market that is too rigidly regulated and to a social insurance system too protective of income. Far-reaching reforms of labor market instituti...