Re: CJE 2001 critical review of trade theory and policy

[pdavidso <pdavidso@xxxxxxx>]

>===== Original Message From "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx> =====
>Unemployment (and underemployment which is a technical form of unemployment),
is
>the black death of prosperity.  Any economic system that requires
unemployment to
>preserve the value of money (combating inflation) is merely keeping the
plague
>epidemic alive in hope of keeping the population healthy.  The right of all
to
>productive and fulfilling work is sacrosanct.  Full employment must be a
>prerequisite for any social contract that mandates any particular economic
system.
>Full employmenht must be an uncompromised goal.  Any economic system that
>institutionalizes unemployment as a policy tool does not deserve support.
>
>Henry C.K. Liu
>
>

Absolutely correct-- but unfortunately all modern economies from the US down
ractice the need for a "natural" rate of unemployment in their central nbank
monetary policies and their fiscal policies.

Paul

Paul Davidson
Editor, Journal of Post Keynesian Economics
University of Tennessee
SMC 523
Knoxville, Tennessee 37996-0550
phone # (865)974-4221; fax #(561)737-8262;
email pdavidson@xxxxxxx
http://econ.bus.utk.edu/davidsonextra/Davidson.html