Catch 22: Solve the problem and lose respect

["John Gelles" <jjgelles@xxxxxxxx>]

	-- The worst thing a Swedish Social Democratic politician
	could conceive is that ordinary people would achieve
	economic independence from constant legislative relief.
	If such politician voted for institutional changes resulting
	in guaranteed employment, a high minimum wage (and
	standard of living), and an otherwise smooth functioning
	economy, he would be diminished in importance, the
	"better" institutions would replace his "fire fighting"
	attention-getting activities, and ordinary people would
	be in control of their own lives. --

		-- Freely paraphrased from Per Berglund's
		closing remarks to the "seminar" on Sweden.
		What is observed of Swedish politicians is
		universal in all representative democracies.

	We on this forum are always on the lookout for
	"mechanisms" that can explain why life is so hard on
	so many people -- mechanisms that are validated
	by time series data.  Well, this particular Catch 22 is
	one of those mechanisms.

	The seminar on Sweden proved further that academic
	economists are part of the mechanism -- they are
	supported by politicians only if they contribute to
	making things harder than necessary.

	There is no escape from the mechanism except by
	appeal over the heads of politicians directly to voters.
	For this reason, all economic theory that remains
	gibberish to voters supports the status quo.

	If you would end unemployment it must be done by
	law.  And the simplest way would be by a line of
	credit.  If the result was a reduced minimum and
	median standard of living (on account of laziness),
	ending unemployment would have to be tied to
	greater effectiveness of automation and robotics
	and a successful application of laziness inhibitors
	of the type found in amateur sports.

	Needless to say, money created to keep the
	economy humming, beyond ordinary bank credit,
	will also be required.  Mr. Keynes explained
	the Catch 22 behind money prices that must pay
	for wages equal to themselves.

	John Gelles