The Review of Economics and Statistics Vol. 27 No. 3 1945
Some Observations on the Murray Full Employment Bill
Abstract
and absolute freedom to choose an occupation and job are allowed. We have never had that fine state of affairs. The crucial issue is, it seems to me, what are the minimum restraints on liberty and freedom of movement that are consistent with full employment? Possibly incentives to move offered by the government (e.g., payment of transportation to workers and tax concessions to capital), and a smoothly functioning employment exchange which gives precise knowledge as to opportunities, may be all that is required. In that case, we may still retain our essential liberties and have full employment. That brings us to the failure of the bill to define full employment precisely and, therefore, its failure to deal with certain aspects of the problem. For example, we should like to know what are the appropriate number of hours of work per week? Are 6o million jobs to be provided at 3o hours (a goal sought by many), or at the prewar level of 37-38 hours, or at 45 hours (present level) which may be assumed to be the choice of the masses of the workers, or some other number which will yield maximum output per man-hour or maximum total output? And if hours are (say) 30, what will the effect be on productivity and wage rates and, therefore, on jobs? Should the government, again, seek to find employment for all those who seek work, or should the government, through proper educational policies, social security programs, and the like, influence the numbers seeking work and thus perhaps solve the unemployment problem? Finally, let us not forget that economists themselves have not given Senators Murray or Wagner clear-cut answers regarding the appropriate policies which will yield the maximum number of jobs. High wages or low wages? A 40-hour week or a 30-hour week? Fewer taxes on investment or on consumption? Higher or lower tariffs? A reduction of taxes or a rise of spending? Less or more public investment?
- DOI
- 10.2307/1928778
- Volume
- 27
- Issue
- 3
- Pages
- 106
- Sources
- openalex crossref