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>full employment has always been a bizarre fetish for Keynesians, social democrats, Marxists and conservatives While I agree with much of your sentiment, Keyne
by stevetrewick 11y ago
>full employment has always been a bizarre fetish for Keynesians, social democrats, Marxists and conservatives
While I agree with much of your sentiment, Keynesian and Marxist economists favour full employment at least in part because in economic terms it raises the reservation wage because there is no reserve labour pool.
- vezzy-fnord 11y agoActually, (orthodox) Marxian economists would likely be opposed to full employment policy and welcome an increasing reserve army of labor since in Marxian theory it's met by a rising organic composition of capital (ratio of "constant capital," i.e. capital goods to "variable capital," i.e. wages and supplementary funds), which in turn entails a fall in the rate of profit as labor is substituted in favor of machinery, and an eventual breakdown in the accumulation of capital. That said, Marxian economists have evolved significantly and a lot of them have since converted to some form of Post-Keynesianism.