Roots of great recession lie in decades of decline in labor market efficiency because of increasing government manipulation

Here's some interesting news from the  Jackson Hole conference as reported by the NYT:

The paper, presented Friday morning at the annual gathering of economists and central bankers at Jackson Hole, Wyo., argues that the share of Americans with jobs has declined because the labor market has stagnated in recent decades — fewer people losing or leaving jobs, fewer people landing new ones. This dearth of creative destruction, the authors argue, is the result of long-term trends including a slowdown in small business creation and the rise of occupational licensing.

“These results,” wrote the economists Stephen J. Davis, of the University of Chicago, and John Haltiwanger, of the University of Maryland, “suggest the U.S. economy faced serious impediments to high employment rates well before the Great Recession, and that sustained high employment is unlikely to return without restoring labor market fluidity.”

Their findings contribute to the growing genre of papers that purport to show that the weakness of the American economy is caused largely by problems that predate the recession — and that the Federal Reserve can’t remedy them with low interest rates.

"Purport" of course is the word the Keynesians like Paul "Pauley K" Krugman have told the NYT stenographers to use. Because if recessions and slow growth aren't caused by thieving bankers and bad monetary joo joo then it calls into question the entire regulatory project upon which so many Keynesians and Democrats rely upon for their livings. Because if microeconomics actually exist and market incentives are (gasp!) real. Then where do the the Krugmanites get off? I mean if they acknowledge the truth then all the power lawyers like Obama, Lizzy Warren and Hillary Clinton will crucify them for abandoning Team Corporatist. But I wouldnt worry too much if I  was a corporatist feeding off the rotting body politic because if Pauley K is any indication the Keynesians will sacrifice their Nobel Laureate Souls for a mess of fashionable press pottage and some pics with starlets.

Or as shorthand you could simply slap your forehead and say: "holy cow! We've done the exact same things the European Social Democrats have done (and that the Aussies and Canucks did before they pulled their heads out) and have gotten the exact same disastrous results! Who'da thunk it?"

Oh and also note that apparently Pauley K told the NYT stenographers to set up Walmart in the first paragraph.  The argument will go something like this:  "Walmart by bringing more efficiency and lower prices to poor, working class and middle class Americans has caused the job deficit and what we really need is less microeconomic efficiency.  We need more retail and wholesale distribution regulation by more Democrats and Keynsians to 'protect' jobs from rapacious capitalists like Walmart and the Kochs."  And in doing so we will put into place the last brick in the European Social Democrat stagnation model.  I'll bet you a buck they do. You just watch.