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Economist Robert Pollin argues that the United States needs to try to implement full employment and how it can help the economy.
While most people intuitively know that low unemployment is important to job seekers, they may not realize that high levels of employment actually would make an enormous difference in the lives of large segments of the workforce who already have jobs. Particularly in an era of historically high wage and income inequality, many in the workforce depend on full employment labor markets, and the bargaining power it provides, to secure a fair share of the economy's growth. For the bottom third or even half of the wage distribution, high levels of employment are a necessary condition for improving wages, higher incomes, and better working conditions. This book is a follow-up to a book written a decade ago by the authors, The Benefits of Full Employment (Economic Policy Institute, 2003). It builds on the evidence presented in that book, showing that real wage growth for workers in the bottom half of the income scale is highly dependent on the overall rate of unemployment. In the late 1990s, when the United States saw its first sustained period of low unemployment in more than a quarter century, workers at the middle and bottom of the wage distribution were able to secure substantial gains in real wages. When unemployment rose in the 2001 recession, and again following the collapse of the housing bubble, most workers no longer had the bargaining power to share in the benefits of growth. The book also documents another critical yet often overlooked side effect of full employment: improved fiscal conditions (without mindless budget policies like the current sequestration). Finally, in this volume, unlike the earlier one, the authors present a broad set of policies designed to boost growth and get the unemployment rate down to a level where far more workers have a fighting chance of getting ahead.
For centuries we've believed that work was where you learned discipline, initiative, honesty, self-reliance--in a word, character. A job was also, and not incidentally, the source of your income: if you didn't work, you didn't eat, or else you were stealing from someone. If only you worked hard, you could earn your way and maybe even make something of yourself. In recent decades, through everyday experience, these beliefs have proven spectacularly false. In this book, James Livingston explains how and why Americans still cling to work as a solution rather than a problem--why it is that both liberals and conservatives announce that "full employment" is their goal when job creation is no longer a feasible solution for any problem, moral or economic. The result is a witty, stirring denunciation of the ways we think about why we labor, exhorting us to imagine a new way of finding meaning, character, and sustenance beyond our workaday world--and showing us that we can afford to leave that world behind.
Considers legislation to establish a national policy and program for assuring continuing full employment in a free competitive economy, through the concerted efforts of industry, agriculture, labor, state and local governments, and the Federal Government.