...from A JOB GUARANTEE IS NOT A “PRICE ANCHOR”, IT’S A “PRICE BUOY” by Cullen Roche, of Pragmatic Capitalism:
“Modern
day economists seek the holy grail of macroeconomics which has come to
be price stability and full employment. These two features of modern
macro are held up on pedestals as if giving a person a job and a steady
wage is all one needs to live a happy and prosperous life. I say these
goals entirely miss the point and steal the potential lives that future
generations can live. What we should seek is the way in which we
maximize our living standards. In doing so we reach the true holy grail
of macroeconomics – the thing that every human seeks – the fountain of
youth, hence, more TIME. After all, it is only through increased
productivity, innovation, creativity and ultimately higher living standards that we are able to attain this (see here for more).”
Over
the past few weeks, a heated debate has been raging among individuals
either subscribing to or interested in MMT (Modern Monetary Theory)
economics. The discussion is related to the notion of a federal Job
Guarantee (JG) to promote full employment, and in theory, price
stability. As Cullen points out, while these are noble goals, full
employment and price stability alone do not guarantee any sort of
prosperity. Democratic and Socialist governments at different points in
history have attempted and, for short-periods, even achieved full
employment with generally disappointing results in economic growth and
public support.
Peter Cooper at heteconomist.com expands on Cullen’s view in Opposing Visions of the Future.
Apart from the JG, Peter considers a Basic Income Guarantee as a means
“to undermine capitalism, particularly the wage labor relation.”
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