Are the solutions to the high unemployment puzzle?

Francesco Silva

LIUC Papers in Economics from Cattaneo University (LIUC)

Abstract: The crisis of the welfare state could hinder the right to work sanctioned by the Constitution, and could make the already precarious realization of other aspects of the social contract even more difficult. This being the situation, in which we can consider the problem of unemployment as being long-term and widespread, there are three possible sceneries, each having their own particular interventional policies. Policies of the first sort aim to change the supply for work both through a radical deregulation of the industrial relationship system, and through a reduction in social expenses. The second possible scenery proceeds from the belief that an increasing demand for private goods and services is inadequate, and suggests solutions that rely on the demand for goods, while developing at the same time the advanced infrastructures and the supply for collective services. Meadès notion of Citizen's Income represents the third alternative scenery, where the social contract is no longer founded on the right to a job, but on the right to an income. The introduction of the idea of Citizen's Income could favour the distinction of productivity from security problems, it would inable considering work not as a condemnation, but rather as a matter choice, motivated by profit or direct utility; favouring a more liberal production of collective goods thereby limiting a too intrusive political power, while increasing those liberties granted to citizens.

Pages: 18 pages
Date: 1995-03
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