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Macroeconomic policy and a living wage

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Macroeconomic policy and a living wage

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wageicy and a Living WageThe Employment Act as Redistributive Economics, 1944-1969palgravemacmillanDonald R. StabileDepartment of Economics St. Mary’s Col

lege of Maryland St. Mary’s City, MD, USAISBN 978-3-030-01997-6 ISBN 978-3-030-01998-3 hups://doi.org/10.1007/978-3-030-01998-3(eBook)Library of Congr Macroeconomic policy and a living wage

ess Control Number: 2018959073© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AC 2018This wo

Macroeconomic policy and a living wage

rk is subject to copyright. j\ll rights are solely and exclusively licensed by the Publisher, whether the whole or pari of the material is concerned,

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wagecal way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now

known or hereafter developed.Ihe tiseoi general descriptive names, registered names, trademarks, service marks, etc. in this publication does not impl Macroeconomic policy and a living wage

y, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for ge

Macroeconomic policy and a living wage

neral use.Ihe publisher, the authors and the editors arc safe to assume that the advice and information in this book are believed to be true and accur

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wage contained herein or for any errors or omissions that may have been made. Hie publisher remains neutral with regard to jurisdictional claims in publis

hed mapsand institutional affiliations.Cover credit: iaroslava Kaliuzhna / iStock / Getty ImagesCover design: Fatima JamadarUlis Palgrave Macmillan im Macroeconomic policy and a living wage

print is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11,6330 Cham, Switzerlan

Macroeconomic policy and a living wage

dPrefaceI his book is a study of macroeconomic policy in the USA in the period following World War IL It challenges the idea that this period was an A

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wageol redistributive economics. I he first concept describes an effort to use government regulation and taxation to secure a living wage lor workers as a

method to increase aggregate consumption. The second concept combines the political economy of a living wage with fiscal policy to further augment ag Macroeconomic policy and a living wage

gregate consumption through higher wages due to increased aggregate demand. In both concepts, the overarching goal was a more equal distribution ol in

Macroeconomic policy and a living wage

come.The principal effort in rhe USA to create the hybrid system of redistributive economics took place during rhe second half of rhe 1940s as part of

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wagetem of redistributive economics. Chapter 1 serves as an introduction to and overview of rhe two key concepts of rhe political economy of a living wage

and rhe hybrid system of redistributive economics. In Chap. 2 I will start exploring the political economy of a living wage before and during the New Macroeconomic policy and a living wage

Deal as background for the Employment Act. Chapter 3 will continue that background by reviewing Keynes' ideasVvi Prefaceregarding wages as sec forth

Macroeconomic policy and a living wage

in his book, The General Theory of Employment, Interest and Money, and considering what was written about it by economists in the 15 years after it wa

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wageemployment might bring about wage-induced inflation. In Chap. 4, I will complete rhe back' ground ol the Employment Act and trace its origins to Roose

velt’s Second Bill ol Rights, introduced in 1944, with a promise of “ lhe right to a useful and remunerative job.’ Ihrough consideration of the legisl Macroeconomic policy and a living wage

ation of the Act and the Economic Reports of the President that it required, I will argue in Chap. 5 chat in the lace 1940s the Truman administration

Macroeconomic policy and a living wage

and its followers bundled Keynesian economics with the political economy ol a living wage to produce the hybrid system of redistributive economics. Ch

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wageibutive economics to revive the economy. When that approach did not get the economy moving last enough, he switched to a policy of tax cuts that combi

ned Keynesian economics with the frcc-market approach of supply-side economics. In Chap. 7, I will present Johnson’s Great Society as a culmination of Macroeconomic policy and a living wage

the hybrid system of redistributive economics. Keynesian economics in the form of government spending and the Kennedy-Johnson tax cut helped to produ

Macroeconomic policy and a living wage

ce a very prosperous economy that enabled Johnson to pay for his Great Society and its goal of completing the New Deal program for a living wage. The

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Macroeconomic policy and a living wagek. I his left the hybrid system of redistributive economics vulnerable to attack with both the political economy ol a living wage and Keynesian econom

ics being blamed for the inflation that persisted through the 1970s.From the early 1920 to the late 1960s, Progressives were optimistic that their pro Macroeconomic policy and a living wage

grams would bring about their ideal of a living wage, They initially based their programs on a simple formula: collective bargaining plus social insur

Macroeconomic policy and a living wage

ance plus a minimum wage yielded a living wage, especially when supplemented by fiscal policy. It did not end the Great Depression. In rhe 1940s, they

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

Dona Id R. Stabi LeMacroeconomicPolicy and aLiving WageThe Employment Act as Redi st ri but!ve Economics, 1944-1969Donald R. StabileMacroeconomic Poli

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