resolving unemployment [email protected] march 6, 2014j progress econ
TRANSCRIPT
Resolving unemployment
26 million unemployed in EU16-24 of age: 5.6 million, or 23,5%7,7% in DE, 56,5% in ES, 57,3% in Greece, 50% in Croatia, 22.8% in BE = underestimate: Bloomberg: 31.2 million instead of 19 million in euro area http://blog.lesoir.be/docs/2013/11/29/la-carte-du-chomage-dans-la-zone-euro/#more-1184
PROSPECTS: IMF: Euro unemployment rate will increase to 12% in 2014 and will remain above 11% until 2017
March 6, 2014 J Progress Econ
Resolving unemployment
26 million unemployed = a disasterFor the individual, for family & children
For society: missed creation of plus-value, of material, intellectual, artistic wealth Inequality (see Wilkinson & Pickett)
POVERTY: EU 25%; 31%aged16-24, 37%ES,45.8%GR,51%BUL
6000 children living in sewers Suicides, ‘austerity kills’ Stuckler&Basu
March 6, 2014 J Progress Econ
Resolving unemployment
CHRONIC SOCIETAL NEEDS: waiting lists!Social housing, schools, transport, clean energy, insulation
More staff for nurseries, old-age homes, handicapped, hospitals, teachers for drop-outs, homeless day-&night
centers,for mentally handicapped & psychiatric pts,warders in prisons, rehab of convicts,treatment of convicted youngsters. Efficient tax revenu services, police & justice depts, postal service, drinking water, sewage, garbage collection,
flood control, more trees
More staff for libraries,theatres&companies,orchestras,musea, independent scientific research, broadcasting
Humane reception of refugees instead of death at Lampedusa
= largely neglected by profit-making sector
March 6, 2014 J Progress Econ
Resolving unemployment
PROPOSAL:In the non-profit& social profit:open 26 million vacanciesthrough public fundingwages will be spent at once in the commercial economy: rent,food,energy,clothes, transport,school,internet,health
corporate profit ; production;employment
=crucial feature of this proposal
March 6, 2014 J Progress Econ
Resolving unemployment
COST ESTIMATEAverage 1000 €/m + unemploy benefits >minimum wage or poverty level; adjusted to collective agreements (Trade Unions) after start of hiring = 1000x12x26 million= 312 billion/y
RESOURCESCOMPARISONS
March 6, 2014 J Progress Econ
Resolving unemployment
RESOURCES:a) immediately: ECB loans à 0.25% through central banks, EIB, to agencies, local govtsLegislation:broaden mandate of ECB cfr FED,BoE b) Halt tax evasion,retrieve lowly taxed capital from havens 1000 billion/y (HermanVRompuy),25.000 billion €(OffshoreLeaks); OECD:automatic exchange between 42 signat. Sanctions mandatory (Gabriel Zucman)
c) FTT 0.1% =316 billion if 27 member statesd) Basket eurobonds (Bofinger)✚VAT revenue,corporate tax,GDP(debt ratios )
March 6, 2014 J Progress Econ
Resolving unemployment
COMPARABLE EXPENDITURES
ECB Febr26:”2500 billion will be repaid”
March 6, 2014 J Progress Econ
Resolving unemployment
COMPARABLE EXPENDITURES 2
EC approved aid to financial sector 4500 billiontotal aid 5085.95 billion, = 40% of GDP: bank guarantees 3646 billion;
recapitalisation 777 billion; liquidities 216 billion; asset relief interventions 445.65 billion
BE supports private corporations 24.66 € billion/y
Obama Adm Stimulus 2009: $1529 billion
FED QE:2008: $800 billion+1020 billion/y
BoE QE: since 2009: £375 billion
BoJapan: $74 billion/month =$1350 billion312 billion €
March 6, 2014 J Progress Econ
Resolving unemployment
OBJECTIONSSkills & qualifications
Risk of inflation“Not the task of public authorities
“Public spending should be reduced
TWO FALLACIES“Investment for growth”
Activation of the unemployed
COMPARISONS to ARRA,iAGS,ETUC,FES
March 6, 2014 J Progress Econ
Resolving unemployment
SUMMARY
26 million jobs in the non- and social profit by public funding
Relieve societal needsbusiness profit, production, hiring,
GDP, debt ratios
March 6, 2014 J Progress Econ