Why on earth, in a period of chronic unemployment, would we purposely set out to lower the spending of a major sector in the macroeconomy? Where do President Obama and Congressman Ryan think the businesses where government money was spent will make up those sales? They won’t. In fact, we should be not only raising the deficit, but it is high time to do what Pavlina Tcherneva and other economists in her school of thought have been arguing for some time: directly employ the unemployed instead of hoping for roundabout effects and multipliers to do the job.Read it at Forbes | Pragmatic Economics
Why Unemployment Isn’t Falling
by John T. Harvey | Professor of Economics at Texas Christian University
John pushes adopting an ELR program and cites Pavlina Tcherneva on the MMT JG.