Re: Unemployment and Keynes

[maxsaw@xxxxxxx]

I would argue that we need to deemphasize the official unemployment rate in
favor of labor force non-participation rates among those who are able-bodied,
of prime age, and not in college, prison, or heading households with children
or other dependents.  The other thing that deserves more attention is the
question of the "full employment rate of unemployment" or the
non-accelerating inflation rate of unemployment.

There was an interesting article in Challenge by John Cornwall on the theme
that labor militance that succeeded in winning wage concessions would end up
undermining its political gains because of inflationary consequences, so that
other concessions ought to be considered along with forbearance on wage
increases.  The primary quid pro quo should be employment increases and
security, not wages, along with industrial democracy and redistributive
public expenditure, among other things.  He is also skeptical of national
economic stimulus in an open economy, though I think  this could be remedied
by internationally coordinated stimulus among the "G-3" (i.e., the U.S.,
Germany, and Japan).