In an article in the Wall Street Journal about the effect of automation on jobs, Boston University economist James Bessen was quoted as saying that the problem is not “mass unemployment, it’s transitioning people from one job to another.”

a. What does “transitioning people from one job to another” entail? During the transition period, what type(s) of unemployment would describe these people?

b. The article noted that “other countries devote more resources than the U.S. to cushioning and retraining displaced workers.” What type of policies do governments use to support displaced workers? What are the benefits and the costs to making the policies to cushion displaced workers more generous?