It won't go like the '80s. Max asked, (below) how things will go if
high unemployment lasts five years or more.
First, it seems more than a possibility that high unemployment will
persist for years. More a likelihood of high unemployment. Monetary
policy is already stretched to what we used to think was its limit.
Fiscal policy, i.e. government spending to replace the consumer and
investment spending gone missing seems totally constrained by the
hawks on the deficit, by the decline of the dollar, and by the
diminishing (or disappearing?) interest of other countries to lend to
the USA.
That leaves the third tool of macro policy, cutting working hours
offered on the market. There is, and has been, a surplus of work on
offer for years, a cumulatively growing surplus. That leaves wages
and consumer buying weak. In other surplus supply conditions, steps
are taken to correct the imbalance. To correct this one the Wages &
Hours Act needs to specify a four day week. (Four days for several
reasons, not discussed here.)
Since even "progessive" economists seem reluctant to discuss, never
mind advocate cutting the work week, it will take years to achieve
what must in the end be achieved.
I think Max is asking a question about uprisings, riots, chaos, etc.
I don't have a good record on predicting that sort of thing.
Gene Coyle
On Oct 2, 2009, at 6:54 PM, Max B. Sawicky wrote:
As an alternative to this bickering, entertaining as it is, I'd
suggest
all assembled try and bend their minds around the possibility of very
high unemployment
lasting five years or more. We had something like that in the 80s,
with no mass
uprising in prospect. How might it go this time?
-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of c b
Sent: Friday, October 02, 2009 3:14 PM
To: [email protected]
Subject: [Pen-l] Jobless rate reaches 9.8 percent in September
From: Doug Henwood
Jobless rate reaches 9.8 percent in September
What? Can't Magic Barry fix it?
^^^^^
CB: What ? No book from Wallstreet Doug on the collapse of his street
?
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
