Anthony Giddens, "Third Way" guru to British Prime Minister Tony Blair
and director of the London School of Economics, has an "open and public
dialogue" about globalization on the LSE website. I've sent in the
following contribution. Please feel free to forward this message to
anyone you feel would be interested.

The "lump-of-labour fallacy" referred to in the message has been a stock
rejoinder to proposals for shorter work time. It is a bogus claim. In
their recent report to the Council of Europe, Boeri, Layard and Nickell
use it to disparage any approach to full employment other than their
favoured supply-side panacea. Their policy advice is not only
fundamentally flawed, it is intellectually dishonest and
anti-democratic. It relies on a hoary rhetorical strategem to obscure
the issues and stifle debate.

Tom Walker
Sandwichman and Deconsultant

Message sent to the "Runaway World Debate" on "Democracy and Third Way
Politics"

According to the background summary for this debate, a keynote of the
new social contract is 'no rights without responsibilities' (see
http://www.lse.ac.uk/Giddens/RWDdemocracyandthirdway.htm). Not
surprisingly, the same theme of complementary rights and
responsibilities was central to the report to Prime Ministers Blair and
D'Alema, "Welfare to Work", prepared by Tito Boeri and LSE experts
Richard Layard and Stephen Nickell for the March 2000 meeting in Lisbon
of the European Council. 
(see:
http://www.palazzochigi.it/esteri/lisbona/dalema_blair/inglese.html).

The issue that concerns me is what responsibilities do the experts have
to ensure that their advice is balanced and credible? Boeri, Layard,
Nickell disparage what they refer to as the 'lump-of-labour fallacy'
behind policies, such as early retirement, which may reduce labour
supply. Aside from the straw-man argument that such policies have labour
supply reduction as their *only* or *predominant* aim, the
lump-of-labour label itself is highly objectionable.

As I have documented ("The 'lump of labor' case against work-sharing:
populist fallacy or marginalist throwback" in Lonnie Golden and Deborah
Figart, eds., _Working Time: International Trends, Theory and Policy
Perspectives_, Routledge, forthcoming 2001), the claim of a so-called
lump-of-labour fallacy has a dubious status in the history of economic
thought. Its use by contemporary economists is characteristically
inconsistent and incoherent. Furthermore, the dubious claim played a
prominant role in anti-trade union and anti-democratic politics in the
U.S. and Britain in the early 20th century. 

In short, Boeri, Layard and Nickell have trotted out a demonstrably
bogus piece of right-wing propaganda to shore up their case for
restricting benefits to the unemployed. I assume they are unaware of the
background of their phraseology. Where is the responsibility
complementary to their 'expert' right to disparage popular wisdom and
thus close off, rather than open up, informed democratic debate?

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