Solving UnemploymentSubmitted by 1m4Paul on Fri, 11/16/2012 - 15:02
To begin any discussion regarding the problem of unemployment (and most discussions in general), one must start by establishing first principles. I believe in what I hold to be not only American values but universal truths; these truths are precepts for my investigations concerning moral, governmental behavior. The three most applicable to this particular investigation are as follows: that in a normative sense, we are entitled to life, liberty, and the fruits of our labor. Encroachment on any one of these rights can be no better than a necessary evil. Because I hold these principles, I have particularly high regard for property rights, and I hold that unnecessary taxation is theft. Deductively descending from this position, I may defend my views on unemployment ethically; fortunately, ethical and economic reasoning concur on this point (though if they didn’t, I would defend the former).
Beginning with economic first principles, one must understand that jobs are a means, not an end in themselves, and that any government spending is representative of growth only to the degree of its non-contingency. To illustrate this point, consider the following scenario: we have 100% employment and a GDP of 100 trillion dollars. Neo-classical/mainstream/Keynesian economists tend to rely entirely too much on the face value of these numbers; they are meaningful only if a number of assumptions are met and the previous principles are understood.
We could have 100% employment if half the country built houses and the other half tore them down, and we could pay the wages simply by printing the money. Why is this economy, though employing everyone with high GDP, not ideal?
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