tag:blogger.com,1999:blog-2277215496195926573.post6827770255806538691..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Pro-austerity incompetents.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-29042310095734278212015-10-11T02:45:28.591-07:002015-10-11T02:45:28.591-07:00The phrase "full employment" is normally...The phrase "full employment" is normally used in economics to refer to something like the "maximum feasible level of employment before inflation becomes excessive" - i.e. a situation where roughly 95% of the workforce is employed. That's the sense in which I was using the phrase.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-8108355101554272822015-10-11T02:05:32.031-07:002015-10-11T02:05:32.031-07:00Ralph> After all, the only purpose of a deficit...Ralph> After all, the only purpose of a deficit is to maintain demand at a level that brings about full employment.<br /><br />Full employment is a noble target.<br /><br />Do we know economies with full employment? North Korea comes to mind (excess workforce is simply absorbed into the army, the salaries can be paid from the money press). I'm not sure, though, if that's a suitable example for the "state deficits don't matter" doctrine.erikdesonvillehttps://www.blogger.com/profile/03768276748717698836noreply@blogger.com