Great Decisions

Harvard Economist Ben Friedman speaking this evening says jobs are not the problem with the economy. Differences between demand and supply of skilled workers is the problem and our K-12 system is at fault.

What to do? Greater choice in the public education system is the solution. Additionally, the earlier we train people, the more effective and successful the training. The problem is it's costly to provide training at lower levels. He sights HeadStart as an example of great success.

According to Dr. Friedman, allocation of capital stock is our second problem. The role of the financial system is to allocate financial capital. The question is, does the system work?

Dr. Friedman implies the answer is no but refocuses the argument. Losses by homeowners and stockholders are not the issue. The issue is the misallocation of scarce resources. In this case, capital stock was misallocated to the housing market.

These are the issues policy makers should be focused on right now, according to Dr. Friedman.

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Location:Wooster, OH