"One of the worst aspects of these economic fluctuations is the high levels of unemployment associated with the downturns. The actuality runs counter to a major hypothesis of Chicago-style economics and its particular models, that demand equals supply—for everything. But if demand for labor equals supply of labor, what does that say about unemployment? According to that mode of thinking, there's no such thing as unemployment. What does demand = supply mean when 9.8 percent of Americans are unemployed, as is the case now? How does the Chicago school interpret that stubborn figure? They say that the unemployed are really just enjoying leisure. They're getting a little bit of an early vacation. But when most people go on vacation, they are happy. If you look at most of the people who can't get a job, they're not enjoying a vacation. The Chicago school would say this is not a problem for economists; it's a problem for psychiatrists. The unemployed should all go see a psychiatrist and try to understand why they aren't enjoying their leisure. But my own view is this is really quite an absurd view of economics and what's going on today."