Designing a Capitalist Economy for Fast Growth and High Employment in Today's Globalized World Economy
The paper begins with a consideration of the hypothesis that public sector employment is a means to reduce the general unemployment rate. It then takes up the proposition that subsidizing domestic investment is an effective way to reduce unemployment. The rest of the paper addresses some of the questions arising about employment subsidies as a means to reduce unemployment. A crucial question is the best way to finance an employment subsidy. Is it a payroll tax? a Value Added Tax? if enforceable, some sort of tax on wealth or non-wage income? Or is the best answer a cutback in welfare entitlements - in "social wealth" - which would permit the introduction of employment subsidies without widening the budgetary deficit. The paper goes on to consider the hypothesis that, in the medium term and beyond, the best remedy is a cut of tax rates (on labor, possibly on domestic capital) financed by the same cutback in welfare entitlements.
Year of publication: |
1998
|
---|---|
Authors: | Phelps, Edmund S. |
Published in: |
Journal of Applied Economics. - Universidad del CEMA, ISSN 1667-6726. - Vol. I.1998, November, 1, p. 87-103
|
Publisher: |
Universidad del CEMA |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Interview with Edmund S. Phelps
Phelps, Edmund S., (2009)
-
Edmund Phelps: macroeconomist and social scientist
Howitt, Peter, (2007)
-
Edmund Phelps' strukturalistische Ökonomie
Pies, Ingo, (2012)
- More ...