the concept of overemployment

[Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>]

I was asked off list to offer more detail on the concept of overemployment.

My contention is that overemployment exists in many regions of the world
and is a long run problem just as underemployment is a long run problem.
Neither one is good for a healthy society, and solving underemployment by
creating overemployment is not an acceptable solution.
We need an economic theory of employment, interest and money which can
explain both forms of undesirable employment.

Here is some information on the subject of overemployment I found using the
search engine google.

Harry Veeder


from glossory at the site http://www.amosweb.com/
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OVEREMPLOYMENT: The condition in which resources are more actively engaged
in the production of goods and services than they are willing and able to at
current prices. This condition is most important for short-run macroeconomic
activity and short-run aggregate market analysis. In particular,
overemployment is a key reason for the positive slope of the short-run
aggregate supply curve. Overemployment is a primary reason the macroeconomy
is able to produce MORE than full-employment production in the short run.
Another reason is natural unemployment. ()


http://econ.ucsd.edu/~aevrense/s19if.pdf
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The "four zones of economic discomfort" are: Zone I overemployment and
excessive current account surplus, Zone 2 overemployment and current account
deficit, Zone 3 underemployment and current account deficit; Zone 4
underemployment and current account surplus.

[diagram of zones]

The United States begins at point 0 after 1985, where it is in internal
balance but there is a large current account deficit. In the short run,
monetary expansion (an upward shift in the point) moves the economy toward
the goal of a greater current account surplus, but also moves the economy
out of internal balance toward overemployment. The expenditure-reducing
policy of reducing the budget deficit (represented by a leftward shift in
the point), used in tandem with an expenditure-switching monetary expansion,
can restore external balance while maintaining internal balance. Moving the
economy into a zone of overemployment puts pressure on the price level,
which ultimately reverses the short-run effect of monetary expansion on the
real exchange rate.


http://auseinet.flinders.edu.au/journal/ vol1iss3/dollard_final.pdf
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Abstract
Globalisation and regional economic imperatives have no doubt led
to modern work environments increasingly characterised by ?too much work¹,
?not enough work¹ and ?no work¹ rather than optimal ?healthy-productive¹
work. Besides negative implications for national economies, there is a
strong belief that mental health problems and stress-related disorders are
the biggest overall cause of premature death in Europe (WHO 2001; Levi,
2002). Income inequality arising from such disparate work states seems to
have negative health consequences for all members of society as social
cohesion that characterises healthy egalitarian societies progressively
breaks down (Wilkinson, 1996). This paper explores the various work states,
and draws upon a range of work stress and unemployment theories and
empirical evidence to describe possible relationships between the meaning of
work, work states, their features, and mental health. It also explores the
?holy grail¹: the balance between healthy work and productivity.