by Paul Romer, recently appointed Chief Economist at the World Bank, has a stunning idea for Sweden described here. See the original article here.According to Romer, Sweden should just allow a *completely independent* new state within Sweden, free from Swedish law where millions of migrants can live under their own laws without even being Swedish citizens. In other words, let’s just create a massive No Go Zone right in the middle of Sweden! Because these have worked so well in the rest of the Europe, haven’t they? Particularly in Sweden:[embedded content]And, just when people thought Paul Romer was freeing himself from neoclassical economics, he has a genius plan to stimulate economic growth: within this No Go Zone, the migrants can be freed from minimum wage laws and have longer working hours, because, you know, wage and price flexibility leads to full employment, don’t you know!Unfortunately for the neoclassical madmen, wage and price flexibility does not lead to full employment equilibrium, and a massive Third World enclave right in the heart of Europe is more likely to accelerate the massive catastrophe unfolding.
Topics:
Lord Keynes considers the following as important: Paul Romer, plan For Sweden
This could be interesting, too:
Jeff Mosenkis (IPA) writes IPA’s weekly links
Mike Norman writes Peter Radford — A Little Knowledge
Jeff Mosenkis (IPA) writes IPA’s weekly links
Mike Norman writes John T. Harvey — The Nobel Prize And Keeping Economics Real
According to Romer, Sweden should just allow a *completely independent* new state within Sweden, free from Swedish law where millions of migrants can live under their own laws without even being Swedish citizens. In other words, let’s just create a massive No Go Zone right in the middle of Sweden! Because these have worked so well in the rest of the Europe, haven’t they? Particularly in Sweden:
And, just when people thought Paul Romer was freeing himself from neoclassical economics, he has a genius plan to stimulate economic growth: within this No Go Zone, the migrants can be freed from minimum wage laws and have longer working hours, because, you know, wage and price flexibility leads to full employment, don’t you know!
Unfortunately for the neoclassical madmen, wage and price flexibility does not lead to full employment equilibrium, and a massive Third World enclave right in the heart of Europe is more likely to accelerate the massive catastrophe unfolding.