Employer of Last Resort as a new ‘New Deal’: A few thoughts on Turkey

Modern Monetary Theory emerges as a plausible alternative to solve Turkey’s staggering unemployment problem. This proposed solution here is the introduction of job guarantee program, which produces a non-discretionary automatic stabilizer that fosters both price stability and full employment. As a monetary sovereign, Turkey has the capacity to use deficit spending to bring growth and provide full employment to the millions who are in involuntary unemployment. The goal here is to tame the business cycles without throwing millions into unemployment, which has social and economic ramifications. In the absence of job creation by the private sector, this can be achieved through the use of government, providing job guarantees and the state acting as an employer of last resort by creating public projects, which will be cyclically adjusted in order to achieve full employment. 

Unconditional Basic Income and State as an Employer of Last Resort: A Reply to Alan Thomas

In a larger context of an egalitarian project which aims to reformulate capitalism a job guarantee program in the form of a State as an Employer of Last Resort (SELR) is considered superior to Unconditional Basic Income (UBI) by many, namely Alan Thomas. This article claims that most of the arguments used to assert the superiority of SELR fail their objective, for the following reasons: first, SELR falls short in its reformulation of capitalism because neither SELR nor UBI alone can euthanize the rentier class. Second, most accounts are based on a flawed assumption that UBI leads to rampage inflation. Third, if macroeconomic considerations are not enough to justify implementing SELR over UBI, then insisting on the superiority of SELR can only stem from two types of moral reasons: on one hand from a perfectionist view of empowering the worst-off through labor and on the other from demands and obligations of reciprocity. We argue that these two moral-based reasons fall short of providing a justification for the superiority of SELR over UBI. We conclude our paper defending the possibility of conciliating the two policies.

Household Harvesting, State Policy, and Migration: Evidence from the Survey of Living Conditions in the Arctic

Household harvesting of wild fish and game contributes to food security in indigenous communities across the Arctic, and in some regions plays an important role in cultural identity of indigenous peoples. The degree to which the state regulates harvesting and restricts distribution of country foods varies widely, however, and this intervention in local economies can affect livelihood opportunities. The paper hypothesizes that where state policy has contributed to harvesting remaining a culturally embedded livelihood strategy, its contribution to the quality of life may influence people to remain in rural communities, despite potentially lower material living standards. Lacking such a cultural linkage, harvesting may become the employer of last resort for people unable to find paying jobs or leave declining communities for a better life elsewhere. The paper examines the association between Survey of Living Conditions in the Arctic (SLiCA) respondents’ intent to remain in their community of residence and household harvesting, cash income from work, and other relevant factors. The results include both similarities and differences for residents of arctic Alaska, arctic Canada, Greenland, and Chukotka. Systematic differences found appear consistent with the hypothesis about the role of household harvesting and state policy toward harvest and distribution of country foods.

MODERN MONEY THEORY: RISE IN THE INTERNATIONAL SCENARIO AND RECENT DEBATE IN BRAZIL

ABSTRACT This paper has a twofold purpose. The first one is to present the core ideas of MMT. The second one is to explain its recent rise in Brazil after the publication of Andre Lara Resende’s articles in the press in 2019 and a book in 2020. In order to do that, the paper is organized as follows. After the introduction, the first session presents the core ideas of MMT: i) chartal money, or tax driven money; ii) functional finance; iii) Minskyan financial fragility; iv) sectoral balances approach; v) employer of last resort. The second session presents some critiques MMT has received both from the orthodox and the heterodox sides at the international level. The third section discusses the particular way in which MMT’s ideas have recently arrived in Brazil, considering peculiarities of the Brazilian economic debate and political scenario. The final session brings back the main ideas presented in the paper and raises critics to Lara Resende’s contributions from a political economy perspective.

Full Employment, Unconditional Basic Income and the Keynesian Critique of Rentier Capitalism

This paper compares and contrasts the basic income proposal with the alternative policy proposal of the state acting as employer of last resort. Two versions of the UBI proposal are distinguished: one is hard to differentiate from expanded welfare state provision. Van Parijs’s proposal is radical enough to qualify as major egalitarian revision to capitalism. However, while it removes from a capitalist class the power to determine the terms on which others labour, it leaves this class in place and able to exert other powers that distort the macro-economy. These include pecuniary emulation, demand pull inflation, and political resistance to full employment so that the rentier class does not have to contend with entrepreneurs *and* the working class over the distribution of the productive surplus. The state as employer of last resort proposal addresses these deeper issues while also claiming that inflationary pressure will undermine the UBI alternative.