THE MINIMUM WAGE AND THE REHABILITATION OF FISCAL POLICY

E Ray Canterbery

Chapter 19 in Inequality and Global Supra-surplus Capitalism, 2018, pp 297-309 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In recent times there has been a debate between the stimulus view and austerity view of economic policy. Nowhere is the debate clearer than when it comes to fiscal policy. John Maynard Keynes and his General Theory are the most famous proponents of the stimulus perspective. Keynes says that government must stimulate the whole economy by giving millions of public jobs to people in fields like teaching, nursing, engineering, and construction work. This can be done indirectly by government deficit spending or by tax reduction. Deficit spending has been the surer path. Beyond the initial stimulus, each of those hired will spend new income this leads to the hiring of many more. There is a Keynesian multiplier effect.

Keywords: Capitalism; Production Surpluses; Supra-surpluses; Casino Economy; Inequality; Vita Theory; Great Recession; Subsistence; Minimum Wage; Markup; Kaleckian Power; Stagnation; Innovation; Technological Advance; Income Distribution; Wealth Distribution; Fiscal Policy; Monetary Policy; Incomes Policy; Zero-interest Rate Society; Trump; 2016 Campaign; John Kenneth Galbraith; Conventional Wisdom; Expectations; Budget Shares; Veblenian Demand; Engel's Law; Casino Effect; Economic Power (search for similar items in EconPapers)
JEL-codes: N00 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813200838_0019 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813200838_0019 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813200838_0019

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().