Why public sector job creation should be fashionable

Title: Why public sector job creation should be fashionable
Creator: Mitchell, William
Relation: Missing Links in the Unemployment Relationship p. 113-132
Relation: http://www.palgravemacmillan.com.au/palgrave/newonix/isbn/9780230202467
Publisher: Palgrave Macmillan
Resource Type: book chapter
Date: 2009
Description: Why should public sector job creation be fashionable? The short answer is that persistent labour underutilization is a huge economic waste and the private sector will never provide enough working hours at acceptable wages to satisfy the workforce. A longer answer requires an understanding of the basic operations of a modern monetary economy, which recognizes that fiat currency systems are public monopolies that introduce imperfect competition into the monetary system, and that the imposition of taxes coupled with insufficient government spending generates unemployment. This chapter aims to provide a macroeconomic framework based on this recognition to underpin the case for public employment creation. We show that unemployment levels (beyond frictions) reflect macroeconomic policy choices by the national government and expose the flaws in the standard orthodox macroeconomics.
Subject: public sector; taxation; macroeconomics; fiat currency; government spending
Identifier: uon:8579
Identifier: http://hdl.handle.net/1959.13/918339
Identifier: ISBN:9780230202467

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