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View Diary: The Job Guarantee and the MMT Core: Part Sixteen, Conclusion (4 comments)

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  •  Been there, done that (0+ / 0-)

    There are these supposed "new ideas" like "full productivity" & "prosperity" (&  to a lesser extent even "basic income guarantee" - good idea, but the JG is a better, more basic one, or even other MMT anti-inflation plans).  Peddled by Cullen Roche, Carney, etc. The short answer to all is "been there, done that".

    All the historical evidence, and all sound theory suggests that the only way to get "full prosperity" "full productivity" , the most vibrant, creative, inventive, scientifically & technologically advancing economy is - to have full employment first, ideally through a Job Guarantee. Ideas & beliefs to the contrary, that there is something, was ever something good about involuntary unemployment  is sheer incredible delusional lunacy.

    These alternative vague aims boil down to old-fashioned, postwar, investment-led, trickle-down "Keynesianism" - Keynes himself being much closer to MMT.  Inflationary bias. Not the best for financial stability. Why do some people always think that the best way to help working people, poor people is to give money to rich people?  Could it be because they are not working people or poor people?

    Of course infinitely better than the current neoliberal mainstream monstrosity. Of course if the whole world had "stayed the course" instead of having the sniffles of the 70s causing the economist quacks to perform lobotomies, it would be a far richer, better, more advanced & happier one.  But that momentary inflation turned a weak point into a catastrophe.

    The JG is an extremely well thought out anti-inflationary idea. The simple, trivial, was-always-obvious -- in retrospect,  solution, that should not be monkeyed with. I'm rather more optimistic than Cullen and you in part 14  that one could actually prove that the JG is the unique universal solution for such problems. Of course one would have to carefully define & formalize things & make some general assumptions, which imho would always be valid in the real world, but I do think this should be possible. And meaningful & informative, because it would show how crazy not having full employment would be, and how obviously right the JG is.

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