http://www.guardian.co.uk/commentisfree/2009/jan/19/shorter-hours-culture

David Spencer in the Guardian this morning echoes two of the
Sandwichman's favorite talking points:

"In a letter to the poet TS Eliot in 1945, he [Keynes] suggested that
unemployment could be lowered by the reduction in working time. Indeed
for Keynes this was the "ultimate solution" to the unemployment
problem. Reducing work time not only extended the time during which
workers could spend income and hence generate employment, but it also
allowed jobs to be spread out more evenly across the available
workforce, thereby reducing unemployment."

and...

"Orthodox economic theory teaches that those who argue for shorter
working time succumb to the "lump of labour fallacy". This is the idea
that there is a fixed amount of work to be done in society, so any
reduction in work hours must increase the number of available jobs. It
is argued by orthodox economists that the amount of work is not fixed
and that reductions in work time will simply add to firms' costs. But
the above fallacy is not wholly persuasive. If reduced hours encourage
people to work more efficiently, then the effect may be to lower
prices and to increase the demand for goods and services and in turn
the demand for labour."

-- 
Sandwichman
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l

Reply via email to