For every criticism of the U.S. economy, whenever people go into a panic, they look around and say, 'That's the cleanest shirt I have. So I'm putting it on.'
In Michigan, in the mid-'80s, the unemployment rate goes way up because a lot of factories shut down. And then, the mid-2000s, to pick a date, the unemployment rate in Michigan isn't that much higher than in the rest of the country. But the main way that happened is people moved.
You have to be looking for a job to get unemployment benefits. If you stop looking for work, you are no longer eligible to receive benefits.
I was always a data guy, not a theorist. Theorists can maintain total purity. The data are always messy.
For policy makers interested in using tax policy to stimulate investments or especially to smooth business cycle fluctuations, the results are not promising.
When Texans suffered from the collapse of the oil market in the 1980s, they could rely on the fiscal union to help them. When Texas boomed with rising oil prices in the 2000s, it contributed to the union to help harder hit regions.