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View Diary: Marx for Dummies 1 (193 comments)

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  •  First of all, love the diary....secondly, (1+ / 0-)
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    Dustin Mineau

    I just wanted to contribute one interesting note about labor, food, unemployment, and monetary systems.
    According to many prominent MMTers (modern monetary theory subscribers).....the whole notion of unemployment is necessarily a monetary phenomenon.  Before modern (plausible time scale of perhaps ~5,000 BCE) monetary systems, there could not really be any unemployment (in the modern sense of actively looking for work and not being able to find it) as without a money system everyone contributed to feeding, clothing, housing the clan, group, etc.  Once you introduce a monetary system and especially when you apply that system through force and taxation....only then could we have the phenomenon of looking for work that pays in a particular currency and not be able to find it.  
    This is why MMTers, generally, presume that the natural rate of unemployment is basically zero, and any unemployment is the result of the monopoly supplier of the currency (generally a state run, with private bank help enterprise) not providing enough currency to provide for people's savings desires + the ability to consume every ounce of production that society is capable of at full capacity=employment.....just a thought on the nature of unemployment and labor

    "The Earth is my country and Science my religion" Christiaan Huygens

    by Auburn Parks on Tue Apr 16, 2013 at 07:06:25 AM PDT

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