The Pen is mightier than the sword, but the Pen must sometimes move the sword against corruption if the corrupt are not moved by the pen.. An idea without an implementer is useless. "The Rulers do not carry the sword in vain"Rom 13:4

Sunday, January 5, 2014

Is Keynesian or Beveridge-esque Full Employment Possible?

You'd need to do some background reading on this if you want to know much about the details of the competitive/contradictory approaches to the issue of "Full" employment, but it is not my purpose today to explain or expand all that.

I want to take issue with just one point.  These economic thinkers seem to regard a "Nation" as some kind of test tube where, if you just mix in the right chemicals, elements etc.. you will produce a pure compound.  The compound is 'full' employment.

I think the fact that  it does not happen, except perhaps in societies which are blessed with  an extreme abundance of valuable and rare  natural resources which require a full work force participation to deal with, (and assuming demand is ongoing) but given most countries or nation states are definitely not in this happy condition,  is ample evidence that the fundamental flaw in Keyne's or Beverage's viewpoint is that they actually believe it is possible to have full employment, and that it can be created by Government intervention/policy. (though Beverage was more market oriented and Keynes more Government interventionist).

There are so many spurious assumptions about human nature and the very essense of a nation state that seem to be ignored by all of them.  That nature is, that life is really about survival, (of the fittest no doubt)...well, perhaps it is more like the 'extreme' success of the fittest (and meanest?) and the 'getting by' of most others. But the simple fact that to have sufficient control over all the contributing factors of economic consistency and predictability are way beyond the ability of any Government to control because they are connected to outside nation states, all of which are competing for a larger slice of the global cake.

Good grief? have I just converted myself to a 'Global Government' pundit?  Looking at the logic alone, you would think so.  "Global" government means it can control all the necessary levers of power and influence to ensure stability and sufficiency for all...right?

 NO...and a resounding "no" at that! Well that was a short lived period of Left wing orthodoxy on my part!  Now I'm back to my heretical 'individual' nation state approach.  Of one thing in this life we can all be absolutely certain, sure and convinced about,  and it is that human nature is absolutely not interested in justice for all, or employment for all. For every noble Cicero, there are 10 corrupt Cataline's, and the more power such people have, the more they want. If there was a world/global government, the fight then would be between those who think they should have more voice, more volume, more vice! more vestments of power...etc.

You know how it goes.. follow the sex and the money.  Just ask Dominic Strauss Khan former IMF head honcho....and is a member of the French socialist party????..... but look at him.. wild sex parties and so on..
On 26 July 2013, French prosecutors announced that Strauss-Kahn was to stand trial concerning allegations of "aggravated pimping" at the Carlton hotel in Lille.  Good grief!

If that's how the big boy of the IMF conducts himself...the man in charge of the worlds money....what does that say about how it would go and how we would fare if such utter drongo's were running some kind of global government?

Late breaking thoughts!   was just listening to this lecture about Keynes policies (Sydney Uni) and at the end they have good old Question Time....and sure enough some dipstick pops up his feral head and tries to orchestrate at this micro level, that which his ideological companions are trying to do at the macro/global level,... ie.. use 'Global Warming' to justify total control and global government! This moron tries to invoke a hyperthetical opinion of the long dead Keynes that would support such a policy. You can find the relevant question at the 59 minute mark. In short these clowns know they cannot succeed in their 'global government' strategy using the soft shoe of persuasion, they can only do it by surreptitious and sneakkkky deceptive means because what they really want is to be wearing the jackboot of Tyranny and keep us barely existing on our knees (cowering in front of them) rather than living free and proud on our feet.

Another thought... (another question)  One astute observer asked about the role  of central banks in controlling inflation. (and how Keynes might advise on that) The lecturer responded that Keynes operated during a wartime economy, and had a lot to do with trade Unions, and suggested that inflation can be controlled as much by wages policy as bank intervention...and that when you have wage pressures and contradictory 'externalities'...you "get with the  Union bosses and cut a deal".  Surrrrre.....hmmm.. yeah... I have a better idea...get the Union bosses and cut off their heads! (I'm using a bit of grotesque metaphoric language here.) but... there might be a not quite so 'cut' and dry solution to their insidious activities.

Another question and BOOOM...my head suddenly exploded. This Lecturer, Professor Tony Aspromourgos, who is in the Discipline of Economics, Faculty of Economics and Business.Said something I just impoded on. A questioner asked about the problem of accumulating government net debt through stimulus  and the other end of that transaction when it has to be paid back!  The Prof stated two things.
i) Labor began it's first term (prior to this election) with a 'clean slate'..no net debt at all..ZERO (thanks to the 'Austrian/von Hayack' economic approach by the Howard Coalition)....Then he started babbling about
ii) not being able to understand how a government debt of say 15% of GDP is just not the slightest problem at all..."why would people worry about that?"  Welllll..as one who knows the pain of interest on debt for the past 15 yrs...I assure you that debt and the interest in attracts is atrocious, evil, horrible, life sucking and demeaning. I HATE IT..... and this joker (I've demoted him from "Professor of Economics to "Joker") says that up to 15% of GDP is no biggy?   (around the 1hr 10m mark)

So, I leave this short post with the thought for you to ponder.. "Is it valid to consider economic policy as being capable of producing full employment ever?"

And of course we cannot just end like that.. like the privately built fast train in Kuala Lumpur has it's obligatory dose of Pavarotti (the owner of the train system is a huge fan).. in my case we should have our mild dose of revealed truth.

12 I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. 13 I can do all this through him who gives me strength. (Phil 4)

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