Re: Full Employment is what?

[Warren Mosler <mosler@xxxxxxxx>]

Right.

I like to point out that the logic is that the private sector wage will always
be
slightly ahead of the JG wage in order to attract needed workers
from the JG pool.  This is qualitatively different that saying the JG wage must
be set
below the private sector wage.  The JG wage could be set at any level, and
market forces will effectively make the JG wage the 'minimum wage.'  This has a
different tone to it than in Paul's statement below, and perhaps a slightly
different dynamic than he may be
implying?

www.mosler.org

Bill Mitchell wrote:

> Paul said:
>
> >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??
>
> Warren's ELR is similar to my Job Guarantee model. In both, the JG wage
> only has to be slightly lower than the
> private sector wage not significantly lower to gain the inflation control.
> It is loose full employment because the
> level of demand associated with JG Full N is < level of demand associated
> with a fully employed private economy.
> The gain it makes has to be relative to the NAIRU mentality that controls
> inflation with unemployment.
>
> The question also has to be asked: can the private sector ever provide
> enough jobs without inflation to fully account
> for all the labour force? my answer is no and therefore the JG is the only
> way to achieve both goals.
>
> best wishes
> bill
>
> William F. Mitchell
> Professor of Economics and Head of Department
> Director, Centre of Full Employment and Equity
> University of Newcastle
> New South Wales, Australia
> E-mail: ecwfm@xxxxxxxxxxxxxxxxxxxxxxx
> Phone: +61-2-4921 5065
> Fax:   +61-2-4921 6919
> Mobile: 0419 422 410
>
> WWW Home Page: http://e1.newcastle.edu.au/economics/bill/billeco.html

--
Warren Mosler
Director of Economic Analysis
III Finance

http://www.mosler.org