Re: Economic reform policy: Some views and proposals

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

The problem presented by unemployment has two major elements:
   (1) The nation is deprived of products it needs but cannot afford,
some of which would be made by people who need a job, and
   (2) People who need a job are deprived of income to pay bills
and sustain their family, as well as sustain the wider economy by
keeping up demand.

The best solution to this problem is for government to spend as
much as possible to get the products it needs. The limit to this
spending should be measured by inflation and not by deficit
calculations. This notion requires  serious consideration of
computer applications in money and price control-- including
reconsideration of the money and tax structures that support
political democracy.

Once government has maxed out its spending, remaining unemployed
persons must be protected by loans or jobs whose purpose is both
humane relative to the individual and economic relative to prevention
of the adverse social effects of unemployment.

The limits to these remedies are their effect on inflation.

Inflation can be fought by many means including subsidized
production to keep necessities affordable -- like housing.

Inflation can also be fought by savings that reduce demand and
its pressure on price.

Inflation can also be fought by luxury taxes that force investors
to produce more affordable goods and fewer luxury goods.

As a last resort, price control and peace production boards
are preferable to unemployment.

As Trond said in the first instance, this forum ought to try
to develop coherent policy recommendations -- and gain
one or several consensus agendas.

John Gelles