I don’t really believe this argument, but Readers need recognize there are different evaluations out there. Less or greater usage of temporary layoffs may make a statistical difference in the reported state of the economy, but I doubt if the laid off employees in the real world find a real distinction. It is basically an argument that business utilizes to feel better about themselves. The typical business will lay off a thousand employees rather than lose half of their Profits, all to protect a Stock value Drop of 25%. No one attempts to justify the real human loss of a potential 12 Weeks loss of Income for Employees; just to ensure that Investors and Management can maintain their extremely high Profits.
Here is a good source for reading material as far as the debate on economic orthodoxy. I am comfortably from the Outside, and can state that there has never been a model created which duplicated the economy precisely. This is not necessarily a bad thing, or is it entirely possible. There would be no markets, per se, if true values could be rationally defined in real time. The lack of possibility comes from the actions of Participants who utilize the advanced information of the models in the first place; if they were at all accurate, they would skew the movements of the markets. It is a major problem with the nanosecond Traders of the markets, who eliminate the uncertainty from the markets. Machine Trading will obviously impede the markets as they advance, all leading to distortions within the markets; a serious problem yet to be adequately addressed.
I like this article, especially its reference to Roubini. I didn’t read much of the thing, but thought it was indicative of the practice of economics. No one could exactly express what a billionaire prostitute could possibly pass on to any Intelligence agency. Incoherent data streams are inherent in both Intelligence and Economics, and anything made from those streams must at best be considered to be hunches. The whole situation for both, like the investigation of the young woman in question, has been over-explored, and in serious need of common sense. lgl