Critically evaluate the debate over “structural stagnation”, technological change, and globalization as outlined in Chapter and other chapters of your text. In addition to the material in Chapter please read Appendix A of Chapter: “Creating a Targeted Safety Net to Help the Least Well Off.” It is also recommended that you read the material in Chapter on “Jobs and Unemployment” especially pages 370-381 starting with the section: “Is Unemployment Structural or Cyclical?” There are additional resources on the topic of Structural and Secular Stagnation under the Macro Web links tab on Blackboard.
As additional background for your post watch the TED talks by Robert Gordon:
And Eric Brynjolfsson:
and their TED debate:
https://blog.ted.com/2013/04/23/the-future-of-work-and-innovation-robert-gordon-and-erik-brynjolfsson-debate-at-ted2013/
You should also view the video: An Interview with Larry Summers on Growth and Prosperity for further insights regarding secular stagnation and inequality. Lawrence H. (Larry) Summers is the Charles W. Eliot University Professor and President Emeritus at Harvard University. Larry Summers served as the 71st Secretary of the Treasury for President Clinton and the Director of the National Economic Council for President Obama. Summers comments start shortly after the 9 minute mark on the video. The URL for the Summers video is:
https://www.youtube.com/watch?v=RbyDud7zlfM
After reading the relevant sections of your text, and watching the TED talks and the Summers interview you are ready to write your post. Please answer the following questions completely devoting at least a paragraph to each question:
1. Briefly explain the difference between “structural stagnation” and “secular stagnation.” What are the root causes of “stagnation” in both hypotheses?
2. What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for macro policy? Explain. What are the adjustments are required to mitigate structural stagnation?
3. How does technological change (such as robotics) potentially impact economic growth, employment, and secular stagnation?
4. Globalization has pulled hundreds of millions of people out of poverty in China and India. How should that gain be weighed against the structural changes that globalization requires in the United States? Should there be a “safety net” for those most hurt by globalization and technological change? What kind of “safety net”? Who should pay for it? Explain.