 Effective Demand, Technological Change, and the Job Guarantee ProgramMichael J. Murray Chapter 5 in The Job Guarantee, 2013, pp 95-124 from Palgrave Macmillan Abstract: Abstract The goal of this chapter is to study the conditions required for the maintenance of full employment within a growing economy comprised of ongoing structural change. Two conditions are considered: an effective demand condition and a structural change condition (Pasinetti 1981). The effective demand condition is mostly associated with the work of John Maynard Keynes and has become a central focus in post-Keynesian economic analysis. As in Keynes (1964), post-Keynesians have rejected the notion that self-regulating markets bring about conditions to attain full employment, whereby full employment becomes only a special case scenario and unlikely to occur in a laissez faire economy. “Pump priming” stimulus may not be sufficient to bring the economy to full employment as different public policies have different effects on private sector employment. Rather, post-Keynesians have favored a targeted demand approach (Tcherneva 2011). Absent of direct federal job creation, fiscal policy must target job creating sectors, which will be much more effective than traditional aggregate demand stimulus. Keywords: Private Sector; Gross Domestic Product; Labor Productivity; Technological Progress; Full Employment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-29799-0_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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