I have a long piece at my
blog, Fester's Place which is a detailed empirical critique of a theory being pushed by
Econopundit which I think will be a theory pushed by the Bush Administration; that the supply side incentives are the only thing that kept the labor force and job recession from being worse and that the unemployment rate is high because there are so many new jobs and high real wages/disposable income jobs available that people are flooding the market.
This is an interesting theory, however in my opinion it is a theory that fails the recent empirical evidence. There is declining work force participation, stagnant real wages and longer median unemployment. There are not any jobs available for people to be attracted to. However I felt that we will see this line of argument advanced quite freqently in the next nine months because it is the best line that Bush has, so please critique my takedown and strengthen it.