The New York Times recently profiled the incredible progress made in terms of the treatment of the U.S. workforce in comparison to nearly every other developed country. The Times concluded that the United States is the most productive and productive economic powerhouse in the world. What follows is my assessment of the facts, as described in a recent article by economist Dean Baker.
The “Baker Box,” according to economist Dean Baker, is a phrase used by economist Dean Baker in the 1990s to describe the economic success of American workers over the years.
Baker first coined the phrase “Baker Box” in relation to the U.S. labor market, when an influential labor economist named Milton Friedman wrote:
The U-9 rate is in the midst of a long period of near-continuous growth. Yet it is an open question, what is going on. Why is the U9 rate so high, and what might the cause be?
In his book, The Great Stagnation , Baker discusses that in the United States, “The decline in the number of unemployed workers was the result of several factors, including a drop in their hours worked and increased competition, with low-paid foreign labor.” He goes on to quote Paul Krugman, writing that “there is a good deal of empirical evidence as well that a large number of unemployed workers are part-time because they can’t find full-time employment and they could find jobs, but those jobs aren’t there.” The result of this competition-induced decline in hours worked is an obvious decline in workers’ labor productivity (labor supplied x hours worked) per hour. Therefore, it follows that the workers do not be able to earn enough money to purchase the goods and services they use to produce this goods and services.
For some reason, the labor economists continue to focus on the number of U9’s per employed worker, as if it were the true metric used to measure the “progress” of the American labor market. And even though Baker has discussed this topic quite a bit in his article, here is my opinion.
A “Baker Box” is a box that is labeled by an economist and labeled according to certain criteria. The Economist typically puts a box on the Baker Box, and this is generally the case with most economists.
Why This Is So Important
According to Baker, “the Baker Box is an artifact of the economic historian’s focus on economic events, not human beings.” The “Baker Box’ is