Jim Devine wrote "It doesn't deal with the problem of low aggregate demand, though (like unemployment insurance) it may act as an automatic stabilizer."
Jim, how do you know there is a problem of low aggregate demand? You see a staggering number of people unemployed and clearly you have assumed that the problem is low aggregate demand. On what do you base that assumption? What if the problem suggested by the staggering number of unemployed in the US is not low aggregate demand, but rather an excess supply of labor relative to the appropriate aggregate demand? If you were told that that is the problem that the macro level, what would your suggested solution be? And going back a step, what is the proper way to measure whether aggregate demand is low, high, or just right? If there are unemployed people in numbers above some conventional rule, do you conclude automatically that aggregate demand is low, without consideration of any other thing? Or should aggregate demand be compared with a measure of natural resources and or pollution sinks? Please tell me how you know whether aggregate demand is low, high, or just right. Gene Coyle > unemployment insurance) it may act as an automatic stabilizer." > It doesn't deal with the problem of low aggregate demand, though (like > unemployment insurance) it may act as an automatic stabilizer. On Oct 5, 2011, at 7:31 PM, Jim Devine wrote: > Sean Andrews 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? > > there's nothing wrong with it. It's also not especially wonderful > either. Job-sharing of this sort is a kind of unemployment insurance. > It doesn't deal with the problem of low aggregate demand, though (like > unemployment insurance) it may act as an automatic stabilizer. It does > lower _measured_ unemployment (as usually measured). > -- > Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your > own way and let people talk.) -- Karl, paraphrasing Dante. > _______________________________________________ > 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
