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How Generous Unemployment Support Helps The Economy

The Horizons Tracker

A recent study from the University of Chicago Booth School of Business attempted to answer this question by analyzing how expanded unemployment insurance affects aggregate demand for goods and services in an economy. This reduction was driven by two channels.

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Reskilling the Future of Work

HR Digest

More perpetual policies might be necessary to increase wages and support future aggregate demand ensuring workforce fairness. We have learned from history that wages for some occupations can shrink for quite a while during labor force transitions.

McKinsey 134
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The More Climate Skeptics There Are, the Fewer Climate Entrepreneurs

Harvard Business Review

The higher the market demand for a drug, the greater the probability that at least one drug maker conducts basic research. In this case, the climate adaptation demand by the nonskeptics benefits the skeptics, because entrepreneurs are more likely to invest in climate resilient products, due to the aggregate demand by the nonskeptics.

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Rethinking The Impact AI Might Have On Work

The Horizons Tracker

They suggest that the current economic feasibility is limited for individual firms but could be enhanced through aggregating demand across firms via larger entities or AI-as-a-service models. The researchers also analyze how computer vision technologies can be scaled up within larger firms, and the challenges involved in doing so.

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The Economic Impact of the Japanese Disasters

Harvard Business Review

Transportation disruptions and the closing of many factories throughout Japan will shrink Japanese aggregate demand and disrupt supply chains worldwide. The destruction will surely cost Japan many times the $132 billion that the 1995 Kobe earthquake did, making it one of the Japan's most costly natural disasters.

GDP 15
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The Question with AI Isn’t Whether We’ll Lose Our Jobs — It’s How Much We’ll Get Paid

Harvard Business Review

” The Commission recommended responses that manage the overall health of the economy (managing and strengthening aggregate demand), promote educational opportunity, provide public employment, and secure transitional income maintenance. Fifty years later, these areas remain the basic road map for public policy response.

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What the U.S. Economy Needs More Than Manufacturing

Harvard Business Review

But a jobs strategy has to be based on aggregate demand throughout the economy. What I missed in his speech was the strategy for the other 90% of the labor force. Don't get me wrong; I'm not against stimulating manufacturing and stimulating exports and so on. If exports are the future, some of the jobs may well come in manufacturing.

Price 8