I have not read any books by Phelps. Does anyone know if he ever quoted Harry Hopkins? Below are quotes from each man and they both relate to how unemployment dimishes skills and hurts morale.
In a 1935 NY Times article, Harry Hopkins, Federal Emergency Relief Administrator was quoted:
"There are those who tell us that we should avoid relief. They sat that straight relief is cheaper. No one will deny this contention. It costs money to put a man to work. Apparently, to the advocates of direct relief the primary object of relief is to save the government money. The ultimate humane cost to the government never occurs to them-of a continued situation through which its citizens lose their sense of independence and strength and their sense of individual destiny. Work preserves a man's morale. It saves his skill. It gives him a chance to do something socially useful."
(if you have
access to Proquest or some data base like that, you can find this article-some information on it is below)
Below is a quote from the Chronicle of Higher Education (Monday, October 9, 2006-extra email edition)on Phelps winning the Nobel Prize:
"In a 1972 book, he suggested that large spikes in unemployment might have irreversible destructive consequences, as workers' skills and morale deteriorated while they sat at home. Just as inflation can have cancerous effects on business owners' long-term expectations, he suggested, unemployment can have poisonous effects on workers' long-term hopes."
Article information THE ROAD TO RECOVERY: SPENDING OR SAVING?; The Debate Is Renewed Between Those Who Advocate Large Expenditures for Public Works and Those Who Insist That Steps Should Be Taken to Balance the Budget and Encourage Private Business By HENRY HAZLITT.. New York Times (1857-Current.
Jan 6, 1935. p. XX1 (1 page)
