An Instrumental Approach to Full Employment: with Policy Implication
Murray, Michael J. (Michael Joseph)
The study proposes that in order to assure full employment, policy measures must address both Keynesian unemployment, and unemployment caused by structural and technological change. It is possible to attain full employment via expansionary fiscal policy advocated by Keynes. However given on-going technological change, it is not possible to maintain full employment with Keynesian policy alone. In order for any full employment policy to be effective it must address both of these issues. The purpose here is an investigation of the theory of unemployment from a Keynesian perspective and a structuralist perspective. I will make an argument that these are two sides of the same coin. Using an input-output framework it will be shown how the ELR program formally fits into the economy and addresses both types of unemployment. Furthermore, it will be shown that the ELR program works in conjunction with the private sector. The initial introduction of the ELR program causes an increase in the final demand for private sector goods and services, thus creating additional employment in the private sector. In order for the investigation of structural/technological unemployment, a structural framework of the ELR program is required. The dissertation will lay out a structural model of the economy with and without an ELR program. This then allows for an investigation of comparative benefits of such a program in addressing unemployment over current government policies. Simulations of model economy with and without the ELR program will be done to show that the ELR program stabilizes final demand. Additionally it will be seen that the ELR sector maintains full employment given structural and technological change.
Table of Contents
Abstract -- List of Illustrations -- List of Tables -- Post Keynesian Approaches to Economic Theory -- The Problem of Unemployment -- Heterodox Approaches to Production -- Employer of Last Resort: A Structural Approach -- Concluding Notes and Areas for Further Research -- Simulated Input Output Tables -- Reference List -- Vita.