More on Job Guarantees: Hyman Minsky & The Employer of Last Resort

  • Financial Stability, Social Justice, and Public Employment in the Work of Hyman P. Minsky by Ryan A. Dodd, Research Associate, University of Missouri-Kansas City, Working Paper No. 54, June 2007 – PDF, Google Docs: Abstract: The theoretical work of the late economist Hyman P. Minsky is associated in the minds of many with the latter’s “financial instability hypothesis”. What is less well known is Minsky’s consistent advocacy throughout his life of what has come to be called, by many of its current proponents, the “employer of last resort” (ELR) proposal—as is his underlying social philosophy. While the lack of recognition of the former has been somewhat rectified in the recent literature on ELR, in this paper I attempt to draw out the links between Minsky’s view of the normal functioning of an advanced capitalist economy, the social philosophy or “vision” underlying his theoretical project and his advocacy of an ELR-type program. It is further argued that such a proposal represents the kind of “radical reforms” required in order to make the transition to a more equitable and democratic form of economic and social organization.
  • Minsky’s Approach to Employment Policy and Poverty: Employer of Last Resort and the War on Poverty by L. Randall Wray, The Levy Economics Institute and University of Missouri–Kansas City, Working Paper No. 515, September 2007 – PDF, Google Docs: ABSTRACT While Hyman P. Minsky is best known for his work on financial instability, he was also intimately involved in the postwar debates about fiscal policy and what would become the War on Poverty. Indeed, at the University of California, Berkeley, he was a vehement critic of the policies of the Kennedy and Johnson administrations, and played a major role in developing an alternative. Minsky insisted that the high investment path chosen by postwar fine-tuners would generate macroeconomic instability, and that the War on Poverty would never lower poverty rates significantly. In retrospect, he was correct on both accounts. Further, he proposed high consumption and an employer of last resort policy as essential ingredients of any coherent strategy for achieving macro stability and poverty elimination. This paper summarizes Minsky’s work in this area, focusing on his writings from the early 1960s through the early 1970s in order to explore the path not taken.
  • Hyman MinskyStablizing an Unstable Economy
This entry was posted in Budget, Economy, Housing Bubble, Ideology, Independence/Nationalism, Social Welfare, Solutions and tagged , , . Bookmark the permalink.

One Response to More on Job Guarantees: Hyman Minsky & The Employer of Last Resort

  1. Pingback: Job Guarantees, Debt Crises, and a Modest Proposal |

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s