Re: Full Employment is what?

["William F. Hummel" <wfhummel@xxxxxxxxxxxx>]

Sven Larson wrote:

>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.

Voluntary ELR with guaranteed income seems like a prescription
for a gradual opting out of the workforce.  Of course it would
depend on the amount of guaranteed income relative to the minimum
acceptable income of the private sector work force.  But surely
there is a danger of a losing in the price competition in a world
of free trade.  It may take a long time, but the elements would
appear to be in place for a downward trend in economic growth and
(average) standard of living.  I have to wonder whether the
European experience is truly supportive of your thesis.

William F Hummel