The Debate Continues At TPM Café

For those of you who have been following my debate with Dean Baker, he's answered again, and again, and I've answered him again, and again, in this string that plays out at TPM Café. Be sure to look through the "Comments" section. Our differences sharpen there.

By the way, some readers of this blog have concluded that I am opposed, in some way, to government action in creating employment. Actually, I wrote in Strategy and Business 13 years ago that the government will have to create work for the chronically unemployable during the long period of transition portended by an economy in which, if you are nothing but a digit, digital technology will replace you. More Boston "big digs," I say; more new universities, more bullet trains. But this is not like "digging holes" in the sense Baker means it--not an economy in which hiked consumption causes business formation in the way it did a generation ago.