How does an economy recover from structural unemployment? What government actions help to facilitate this recovery?

In dealing with structural unemployment, the government's most efficient tool is legislation, updating current anti-trust laws and creating new regulations, shifting a greater portion of the social costs of the transition to the companies replacing workers with technology.

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There is much debate from economists, historians, and political scientists about how an economy recovers from structural unemployment. Much of the discussion centers around the role of government, whether conservatives' view of a limited government response (allowing the market to correct the economy) or progressive liberal expanded government (injecting massive amounts of government regulation and tax money) solution. Both views are represented in history. While the results are mixed, there is a bipartisan agreement that government has a role in organizing resources to minimize the negative consequences of shifts in industrial production to technology, leading to unemployment. History's lesson is the public sector (governments) is incredibly inept at predicting how technology impacts the economy than the private sector. The private sector is extraordinarily efficient at taking advantage of the public sector's inability to come to grips with the displacement and dislocation of workers...

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