4 Comments

Does anyone today believe with Keynes that maintaining full employment with good monetary policies (and or fiscal policies aiming only at equating aggregate demand and supply) would result in more equal incomes? Would that work even w/o technical progress? It would surely be more difficult with technical progress.

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Well... I kinda do. A high-pressure economy with low interest rates, if you can stay on the tightrope. The long run is a succession of short runs, after all...

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Well, OK, in that sense, I can too, though I'd put the emphasis on maintaining real income growth for which non-un-employment is a necessary but not suffuent condition. Hence neo-liberal policies like reducing trade restrictions, taxation of net CO2 emissions, shifting from wage taxation to a VAT for SS and health insurance, higher skilled immigration, de-Nimbyfication of public investment, lower structural deficits.

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Touché...

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