In short, there is nothing inherently wrong with this kind of plan as a short-term measure. There is a potential problem of relying on any short-term measure as a permanent cure for deeper structural problems. There is also the potential pitfall of embracing short-term work-sharing as a substitute for permanent work time reduction as part of a progressive response to technological improvements in productivity.
With regard to the short-time policy in the Lancashire cotton industry, Keynes wrote, in 1926, "Since the idea of curtailing output was not fundamentally vicious (as some critics, but not I, seem to think), it will be useful to consider why the policy of short-time broke down so badly." The words in parentheses refer rather delicately to a century long (at least) tradition among journalists, reactionary politicians and business spokesmen to characterize unions and demands for work time reduction or work-sharing as "fundamentally vicious" and as having the ulterior motive of artificially raising wages and tyrannizing over employers . I could give prominent examples from 1834, 1872 and 1901. Keynes was simply pointing out that short-time working (work-sharing or Kurzarbeit) was not a panacea that could cure every ailment of industry and relying exclusively on short-time working policy could have deleterious long term consequences. There are thus two distinct policies and two time frames and stake here: work-sharing and secular work time reduction; and the short and long terms. With regard to the long-term Keynes, in 1943 and 1945 prescribed working less as the ultimate cure for unemployment. Marx had a more radical position, naturally, describing the legal limitation of the working day as the precondition without which attempts and improvement and emancipation would prove abortive. On Wed, Oct 5, 2011 at 7:03 PM, Sean Andrews <[email protected]> wrote: > So I realize that there is some intense debate about this--and I know > I could search the archives to find out what it is about--but what, in > short, is wrong with this kind of plan, at least as a short term > measure? > > sean > > On Wed, Oct 5, 2011 at 18:46, Sandwichman <[email protected]> wrote: > > "The essence of the plan is a universal limitation of hours of work per > week > > for any individual by > > common consent, and a universal payment of a wage above a minimum . . . I > am > > asking the > > employers of the nation to sign this common covenant . . . in the name of > > patriotism and > > humanity." (President Franklin D. Roosevelt, 24 July 1933) > > > > Economica (2011) 78, 133–158 > > > > http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.2009.00804.x/pdf > > > > Work-sharing During the Great Depression: Did the > > ‘President’s Reemployment Agreement’ Promote > > Reemployment? > > By JASON E. TAYLOR > > Central Michigan University > > Final version received 28 January 2009. > > > > > > The President’s Reemployment Agreement (PRA) of 1933 directed firms to > > reduce workweeks during the > > Great Depression so existing jobs could be spread into additional > employment > > opportunities. Similar ‘worksharing’ > > policies have recently been implemented across Europe in hopes of > reducing > > unemployment. I find > > that, ceteris paribus, the work-sharing aspects of the PRA created nearly > > 2.5 million new employment > > opportunities in around four months. However, the programme also required > > firms to raise hourly wage > > rates, offsetting close to half of these gains. Furthermore, most of the > > remaining employment gains were > > wiped out after cartel-oriented industry-specific codes of fair > competition > > supplanted the PRA. > > > > -- > > Sandwichman > > > > _______________________________________________ > > pen-l mailing list > > [email protected] > > https://lists.csuchico.edu/mailman/listinfo/pen-l > > > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Sandwichman
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