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Social Protest Lit: Ebenezer Elliot, “The People’s Anthem”

A poem from Ebenezer Elliot entitled The People’s Anthem from Book IV called “Out of The Depths.” This chapter is focused on man’s pursuit of remedy for social injustice: When wilt thou save the people? O God of mercy! when? Not kings and lords, but nations! Flowers of the heart, O God, are they! Let them not pass, like weeds, away! Their heritage a sunless day! God save the people! Shall bring crime for ever, Strength aiding still the strong? Is it thy will, O Father? That man shall toil for wrong? “No!” ...

Stephen Moore’s Ridiculous Anti-Clean Energy Rant

Hard right-winger Stephen Moore took a break from pushing debunked trickle-down economic policies to take a pathetic shot at clean energy.  Let the stupid begin. …radical Greens, one of the most influential political forces in America today… Seriously?  He goes on to mention the famed Sierra Club as one of these forces.  And where did they rank in 2013 on lobbying: 755.  In fact, if we look at the top 50 interest groups giving to members of Congress this year, no sign ...

Anti-Israel Policies/Actions Is Not Anti-Semitsim

There have been growing protests in Europe against the mass murder of Palestinians in the Gaza Strip by the State of Israel. These actions are in response to the IDF killing 500 Muslims there with the vast majority of them being civilians. But what is troubling about these movements is, according to this article in the NYT, an anti-Semitic tinge has taken place at these protests. The story reads that in France: Several recent pro-Palestinian demonstrations in Paris have boiled over ...

Warren For President?

Today at the the annual Netroots Nation conference in Detroit, the nation’s largest gathering of liberal activists and organizers, Massachusetts Sen. Elizabeth Warren (D) reportedly drew an applause that Hillary could only dream of. According to NYT and Politico reports, Warren was a rock-star while Hillary Clinton, the likely Democratic candidate for President, was absent. Warren’s populist talking points and her history of taking Wall Street to task (remember that Warren was an early advocate for the creation of a new Consumer Financial ...

Social Protest Literatue at Sparking The Left

Here at STL we are starting a new feature. In between our political-insight posts, I will start publishing excerpts or entire pieces of great literature that speak to crucial social and political issues which span the centuries. Though almost all in the Western tradition, the subject matters are transcendental. Now first to name my source, I am taking pieces from Upton Sinclair’s selected and edited collection “The Cry for Justice: An Anthology of the Great Social Protest Literature of All Time.” ...

Pulitzer-Winning Journalist Detained for Being Undocumented

I was first brought aware of Jose Antonio Vargas’ story last week in a piece he penned in Politico. He explained that he was in the Rio Grande Valley, in the city of McAllen, just north of the Mexican border. He was there to see first hand the tens of thousands of undocumented children, most of them from Central America, and observe how they were being treated. The trip was also used for a news conference appearance and vigil organized by United We Dream, ...

GOP Refuses Funding for Border Children Projects

A humanitarian crisis unseen before at our borders is becoming more and more urgent everyday at Rio Grande Valley, TX, and other Southwest locations. And yet the GOP is arguing over numbers. Yesterday President Obama requested an amount of $3.7 billion from Congress to help aid the 57,000 unaccompanied minors who illegally crossed the border from the Mexico side since October. They are mostly from violence-ridden Central American countries, like El Salvador, Guatemala, and Honduras (Honduras has the world’s highest murder ...

Problems galore for the new government headed by Mr. Narendra Modi in New Delhi – Imperative for the first time PM and his council of ministers in governance amidst multiple challenges

The phenomenal victory for Mr. Narendra Modi and his party (the BJP) in May 2014 general elections has not only drawn the adulation of people world over but also silenced all its die hard critics at home and abroad. It was so stupendous and stunning that even the American government and its top leaders across party lines acknowledged Mr. Modi as the emerging democratic leader of the world, setting aside their past antagonism as an error of judgment, not based ...

Selective Outrage

War is hell.  All we have to do is look around the world to see its toll.  That being said, I don't understand the lack of outrage coming from this President and his administration other than that aimed at our one ally - Israel which is doing no more than trying to protect it's people from rocket fire and constant raids from Hamas. The fact that Palestinian civilians are getting killed is a tragic yet unavoidable aspect of this war.  Why ...

Why Are We So Full Of Hate?

What has happened to human kind?  No matter where you look we find ourselves surrounded by a world filled with hate. What puzzles me is how it's combined with political correctness.  Take this country where so many words are now frowned upon and even forbidden because they are hurtful to certain people.  Redskins, squaw, savage plus a whole lot applying to blacks, orientals and hispanics not to mention middle easterners.  Has it dawned on anyone banning the names has done nothing ...

Has Putin Over Reached Once Too Often?

My, oh my.  We've watched this man make mince meat of Obama over the past several years.  Each time you could see the smirk broaden and the swagger get more pronounced. He and his allies - Iran, China, Syria and North Korea were truly enjoying themselves. But as happens with a lot of bullies, they get over confident and suddenly everything around them collapses. I'm wondering if this is the case with the downing of the Malaysian passenger jet. With the death ...

If Only It WERE The Heat!

What a day.  A passenger plane has been shot down over Ukraine uncomfortably close to the Russian border. Hamas reneged on the humanitarian cease fire so Israel launched their ground offensive. Children still pour across the border while Congress dithers. It's now being reported parents are giving them birth control in case they are raped during the journey. Along that line former member of Congress, Todd Aiken, who once talked about legitimate rape and the idea that women's bodies protected them from becoming ...

Hannity's Histrionics

For a person who doesn't have much faith in the intellect of pundits, I wonder why I watch them so often.  I wonder even more why the cable outlets and networks that employ them don't take more care in who they hire. Many of them get on crusades that bear no resemblance to reality.  Sean Hannity is one of the most prominent. The night before last  he was on his Bowe Bergdahl kick demanding to know why he was returned to ...

Do Actions Speak Louder Than Words?

If the President could run away from the border mess any faster I'm sure he would. It's being said it's because being seen in the setting of kids crammed into confined spaces with their scabies and lice would reflect badly on him.  It could even be his Katrina.  Well, maybe.  But who's fault is that? It goes to show his handlers aren't as smart as they think they are.  For one, drinking beer and shooting pool in Colorado, a state where ...

The Kids Always Went Home

Watching the immigration mess going full bore brought to mind a lot of things that have involved children from other nations.  The first thing that comes to mind is the Disney song It's a Small World After All that speaks to all we have in common. Hopes, dreams, all the warm fuzzy stuff. We've had exchange student programs where a student from another country lives with a local family to learn not only academics but what life in American and Americans ...

The Militia Is Coming, The Militia Is Coming!

That's all we need! News has it a call has gone out for militia, both unarmed and armed, to gather along the border to help private land owners protect their property in something called Operation Save Our Borders.  Terrific! Remember how well it went when militia turned out to help to  help Cliven Bundy in his fight over Federal grazing rights in Nevada?  It came within a hair's breadth of turning violent. I really feel for the border towns who are the ...

I never submitted the whole system of my opinions to the creed of any party of men whatever, in religion, in philosophy, in politics or in anything else, where I was capable of thinking for myself. Such an addiction is the last degradation of a free and moral agent. If I could not go to Heaven but with a party, I would not go there at all. Thomas Jefferson
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Ralph Musgrave - Ralphanomics

An argument for private sector JG.

The electorate votes for a public sector which it thinks is of a size such that the marginal product of labour in both private and public sector is the same. (For a definition of marginal product, see ** below).

I.e. we all want a public sector of a size such that shifting a small amount of labour from one sector to the other makes what we believe to be little difference to our overall well-being. Thus any argument on the relative merits of public and private sector JG must proceed on the basis that the marginal product of labour in both sectors is the same, before JG is set up.

Now if JG is created JUST in one sector (say the public sector), the marginal product of labour in that sector will decline to below that of the private sector: not what the electorate presumably wants. And this phenomenon is reinforced by the fact that public sector is not good at employing the less skilled.

Thus, if the rules governing how public and private sector employers hire JG labour are the same, GDP is maximised for a given total number of JG employees.

Existing employers versus “specially set up schemes”.

Let’s assume JG is confined to the public sector. There is then a choice between allocating JG employees to EXISTING public sector employers or creating what might be called “specially set up” schemes. The latter were more or less what the WPA in the 1930s consisted of.

The advantage is using EXISTING employers is that it largely disposes of a big problem that afflicts the whole JG idea, namely what might be called the “skill mix” problem.

This problem was referred to by Malcolm Sawyer in a paper on JG. See under the heading “Functional Finance and ELR” in his paper.

The skill mix problem is as follows. If unemployment is well above NAIRU, much the best way of bringing down unemployment is a straight rise in demand, not JG. Therefor the real niche for JG is in dealing with “at or below NAIRU” unemployment. (Incidentally, I’m using the acronym NAIRU in a very loose sense: if you prefer “natural level” or Bill Mitchell’s “inflation barrier” idea, that’s OK by me. I’ve never had much interest in the differences between these quite similar ideas.)

So let’s assume unemployment is at NAIRU. Of course no one knows with any great accuracy what level of unemployment corresponds to NAIRU. But that doesn’t matter: the purpose here is to set up a JG system which is perfect IN THEORY, and that’s worth doing. The real world is one big mess compared to the world of theory, and JG in the real world might be such a mess that it’s not worth implementing. But that’s another matter.

Getting back the skill mix problem, the big problem facing an economy at NAIRU is the difficulty employers have in finding the types of labour they want on each local labour market. Thus any “specially set up” JG scheme (which by definition gets its labour exclusively or almost exclusively from the ranks of the unemployed) will have a skewed labour force: in all probability it will be biased towards the less skilled.

However, that problem is ameliorated if JG people are allocated to EXISTING employers. To illustrate, an employer with what the employer regards as a perfect mix of different skills can probably cope with a few more less skilled people if the price is right – i.e. if those additional less skilled people get the JG subsidy. 

** The Oxford Dictionary of Economics defines “Marginal product” as “the extra output that results from a small increase in an input….”. Thus the marginal product of labour in a particular firm or sector of the economy is the extra output obtained from employing one extra person (or person hour) in that firm or sector.

Afterthought (same day): John Carney also refers to the skill mix problem.

Ralph Musgrave - Ralphanomics

Author: Ralph Musgrave - Ralphanomics

I wrote a book on unemployment recently with James Galbraith, and others. Galbraith is one of Obama's economic advisers. I love the different cultures that exist in this world. I took an interest in them long before the daft word 'multiculturalism' was widely used. I want to see these cultures preserved. I want to see Tibet staying Tibetan, and Britain staying British.

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