Re: PKT digest 1346/elr

[Randy Wray <lwray@xxxxxx>]

there were comments from john g., mason, and bernard on my elr post;
some quick responses, and i presume warren might also
respond. apologies because w/my current system i cannot cut and paste.

John
1. workfare must be better than welfare. agreed. i think this is
almost a matter of definition. work is indeed better.  and we can
ensure that the work is not demeaning but instead produces useable
skills. and accomplishes desirable things.
2. output will have to rise in order for all to have rising real
living standards. agreed. this is accomplished by first ensuring the
elr jobs do add to standard of living. and second by ensuring bpsw is
set high enuf to raise agg D.
3. address fear of real inflation. i don't understand your
point. motivation will be increased, not reduced. work is good for
motivation.

mason
1. if bpse deletes labor pool, won't fed try to restore reserve army?
a big problem indeed. that is why i spend so much time arguing against
the fed's policies and beliefs fed does in fact fight inflation. but
w/elr, fed cannot restore reserve army; indeed, fed will just lower
private employment, which will presumably reduce fed's support! we
might finally see the end to greenspan.
2. won't elr increase immigration. it might. might help resolve the
social security crisis!
3. is bpse a living wage. should be set to be so.
4. what is the incentive on bpse; won't they all lean on shovels?
funny, my own relatives were all on wpa and have a different
view. they all got jobs and training and then led productive lives. by
the way, minsky got his start in econ on wpa.
5. work or starve? isn't that slavery? yes, wage slavery. same as all
of us. i would by the way, support a guaranteed minimum annual income
for all regardless of work. that is separate. we ought to treat humans
as well as we treat dogs.
6. househusbands paid bpsw? sure.
7. is saving only govt paper? yes, i am afraid you need to look at the
GT. failing that, try my papers in jpke and jei (ask and i'll send
cites).
8. are taxes the sole basis of fiat money? warren has consistently
denied that this is his position. not sole basis. can we formulate a
general theory with taxes simply another contract enforced in fiat
money terms? i have thought so.
9. interest rate maintenance acct. why not euthanize the rentier? i do
favor lower interest rates. i believe capitalist economies work better
with lower rates.

bernard
1. elr would increase supply of labor (more come into labor
force). yes. that is good. increases social output. reduces
inflationary pressures.
2. what skills would state produce? these are the devil details. i
think that to start, learning to arrive to work on time, fulfilling
tasks, gaining responsibility are all important. beyond that, this
needs to be a social decision to fulfill social needs. yes, i know
that is vague.
3. would they work in teams? sure. in a small community w/low unemp
you might be right that it would be hard to form a team. but can work
w/another team. for example, i used to work in CETA alongside local
govt employees; this allowed the county govt to have tasks fulfilled
that they could not afford while fedgovt paid my salary.
4. what about unemp who refuse to work? see above. in a rich society,
no one should go w/o adequate food, clothing and shelter regardless of
their motivation. but this is not part of elr, and it will take us too
far afield.

thanx for comments
randy wray