Policies to restore full employment

Maurice Scott and Robert A. Laslett

Chapter 7 in Can We Get Back to Full Employment?, 1978, pp 72-91 from Palgrave Macmillan

Abstract: Abstract We can summarize the preceding analysis by listing three conditions which must be fulfilled if we are to restore full employment for any sustained length of time: 1. Aggregate demand must be kept sufficiently high. 2. Wages must not rise much faster than labour productivity. 3. The share of profits must be such that the right mix of labour-using and labour-saving investment is undertaken, given the rate of growth of the labour force. The fundamental obstacle to achieving these conditions is, and has been, the tendency of wages to rise faster than productivity, and at an accelerating pace, when unemployment is low and profits are high. We consider policies to alter this state of affairs in (roughly) ascending order of their radicalism (we do not, however, consider very radical policies).

Keywords: Monetary Policy; Trade Union; Real Wage; Collective Bargaining; Wage Increase (search for similar items in EconPapers)
Date: 1978
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-16020-4_7

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DOI: 10.1007/978-1-349-16020-4_7

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