Re: Full Employment is what?

[Sven R Larson <larson@xxxxxx>]

Paul Davidson wrote:
> At least the Mosler ELR concept has as definition of full employment
> that has  some meaning -- but the problem is that thre government wage
> rate MUST be significantly lower than the private sector wage rate.
> Thus there may be many workers who would be willing to work at the
> market wage rate but who could not find a job -- and still not be
> willing to work at the government wage rate?  Is that what we mean by
> full employment??

If ELR is combined with a tightening of social welfare regulations - the
extreme of which is a "no work, no cash" policy - then the definition of
full employment in ELR does not have a meaning. Some proponents of the
ELR idea have hinted - but never stated explicitly - that it is immoral
not to participate in ELR programs if you're unemployed, that people
should always do something for money. Drawing on European experience I
can say that ELR programs tend to encourage tougher welfare policies;
welfare policy becomes workfare policy. The concept of full employment
over here has more or less lost its meaning both to workfare-prone
politicians and to those who go in and out of workfare programs.

/srl

--
Sven R Larson
PhD; Assistant professor of economics
Department of Social Sciences, Bldg. 22.2
Roskilde University
Pb 260
DK-4000 Roskilde, Denmark
Phone: (+45) 4674 2910