Robert Reich started a sort of debate at his blog concerning Keynesianism. There are several important differences between Keynesian Times and the Present. A basic disconnect has been introduced between Capital Investment and Labor Capital utilization. Swarm labor has never been in force, even in the CCC camps of the Roosevelt era. Today, if it is a Choice between human labor and robotic mechanics, then Business will chose the Robots at a rate of about 80/20. The primary must be asked is whether Keynesianism can operate as it did in the time of Keynes; the Answer being No! Can it operate at any measurable Scale of Assistance? Keynesianism must always be based upon Consumer Spending, otherwise no additional Cash flows through to absorb the production of Business. Nothing is accomplished without the later, and the current Choice matrix of Business for Robotics could mean that Keynesian Spending will even lead to a reduction of Consumers due to Investment.
The obvious response is to state that the Government should employ greater amounts of labor, either directly or indirectly. This brings up another Problem in itself, as there is much hazard to absorption of Private Sector industry, just to promote Employment. I favor universal plans which would impact the entire economy, so that adverse effects are spread, and local controls are not displaced. My second favorite Option is for the Employment to be indirect. I also think any Plan will fail, unless it is centered upon the individual laborer. Ideas become striated under such strictures, but it is the function of academics to change the ridiculous into project able Planning.
Here is my Gift to the confusion of the era, which might lead Obama to shake his head, and Wright to curse White men again:
1) Unemployment Regulations should be altered, allowing Part-Time employment of up to 20 hours per Week, without loss of Benefits. Part-Time Employees need a Consumer Spending Assist even though they are Working, and the limitations of Weeks of Benefits will limit the Gaming of the system; though the interim period will get Us hopefully past the Recession.
2) A Law should be passed stating that Businesses can employ unlimited numbers of Part-Time Employees, where Employers can deduct up to the Minimum Wage level from their Profits for each of the number of Hours of Part-Time labor utilized. This is Double Dipping, with the Wages first deducted from the Operating Revenue, then redacted from the resulting Business Profits. Both Employees and Employers gain from this program, and there is double advantage to Consumer Spending; all for an estimated Loss of less than 4% of the Business Tax revenues which can be recovered.
3) There is a real Need for a universal Optional Health Care system. This System cannot guarantee the best medical care available; We are talking about warehouse hospitals, a Drug list of only outdated Patent rights, and medical procedures limited to reconstruction of lifestyle or immediate life-saving operations. Does it remind of the old VA hospital system? It should, because that is what it is based upon. Government can assure the necessary number of Beds, extort whatever medical insurance is in force, and will insist upon reversion to Home health care upon capability in order to save on Budgets. There will be maintained desire for individual health care to obtain the best medical treatments available, but there would be no patients without some form of Care; especially if the enabling law insisted on Out-Patient clinics to relieve Emergency room clogging; total Costs could be less than the current Medicare/Medicaid system, and quality Health Care would still be available. lgl
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