The Hybrid System of Redistributive Economics
This chapter provides an overview of the book’s general theme that the period following World War II was not an Age of Keynes in macroeconomic policy and that the Employment Act of 1946 was more complicated than previously thought. The chapter also introduces and explains two concepts that display the complex goals of the Act, the political economy of a living wage and the hybrid system of redistributive economics. The first concept describes an effort to use government regulation and taxation to secure a living wage for 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 aggregate consumption through higher wages due to increased aggregate demand.
KeywordsEmployment Act Keynesian economics Living wage Distribution of Income Fiscal policy
- Acemoglu, Daron, and James Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York: Random House. Amazon Kindle Edition. 2012.Google Scholar
- Akerlof, George A., and Janet L. Yellin. 1996. Efficiency Wage Models of the Labor Market. Cambridge and New York: Cambridge University Press.Google Scholar
- Barkin, Solomon. 1941. Labor’s Attitude Toward Wage Incentive Plans. ILR Review 1 (July): 553–572.Google Scholar
- Blinder, Alan S. 2018. Advice and Dissent: Why America Suffers When Economics and Politics Collide. New York: Basic Books. Amazon Kindle Edition.Google Scholar
- Brinkley, Alan. 1996. The End of Reform: New Deal Liberalism in Reform and War. New York: Vintage Books. Amazon Kindle Edition.Google Scholar
- Chase, Stuart. 1932. A New Deal. New York: The Macmillan Co.Google Scholar
- Clark, John Bates. 1968 . Essentials of Economics Theory. New York: Augustus M. Kelley Publishers.Google Scholar
- Cobb, Charles W., and Paul H. Douglas. 1928. A Theory of Production. The American Economic Review 18, Supplement, Papers and Proceedings of the Fortieth Annual Meeting of the American Economic Association (March): 139–165.Google Scholar
- Council of Economic Advisers (CEA). 1966. Annual Report of the Council of Economic Advisers. January. Online by Gerhard Peters and John T. Woolley. The American Presidency Project. http://www.presidency.ucsb.edu/economic_reports/1966.pdf. Accessed February 8, 2017.
- Culver, John C., and John Hyde. 2015. American Dreamer: A Life of Henry A. Wallace. New York: W.W. Norton & Co. Amazon Kindle Edition.Google Scholar
- Dickman, Howard. 1987. Industrial Democracy in America: Ideological Origins of National Labor Relations Policy. La Salle, IL: Open Court.Google Scholar
- Douglas, Paul H. 1957 . The Theory of Wages. New York: Kelley and Millman, Inc.Google Scholar
- ———. 1935. Controlling Depressions. New York: W.W. Norton & Co.Google Scholar
- Douglas, Paul H., and Sam A. Lewisohn. 1923. Factors in Wage Determination—Discussion. The American Economic Review 13 (March): 141–146.Google Scholar
- Hacker, Jacob S., and Paul Pierson. 2016. American Amnesia: How the War on Government Led Us to Forget What Made America Prosper. New York: Simon and Schuster. Amazon Kindle Edition.Google Scholar
- Hansen, Alvin H. 1964 . Business Cycles and National Income. New York: W.W. Norton & Co.Google Scholar
- ———. 2018. How Capitalism Endogenously Creates Rising Income Inequality and Economic Crisis: The Macro Political Economy Model of Early Industrial Relations. Industrial Relations 57 (January): 131–173.Google Scholar
- Keynes, John Maynard. 1933. An Open Letter to President Roosevelt. The New York Times, December 31. http://newdeal.feri.org/misc/keynes2.htm. Accessed March 16, 2015.
- Lamale, Helen. 1958. Changes in Concepts of Income Adequacy over the Last Century. The American Economic Review 48, Papers and Proceedings of the Seventieth Annual Meeting of the American Economic Association (May): 291–299.Google Scholar
- Lekachman, Robert. 1966. The Age of Keynes. New York: Random House.Google Scholar
- Marglin, Stephen A. 1990. Lessons of the Golden Age: An Overview. In The Golden Age of Capitalism: Reinterpreting the Postwar Experience, ed. Stephen A. Marglin and Juliet B. Schor, 1–38. Oxford: Clarendon Press.Google Scholar
- Parker, Randall E. 2007. The Economics of the Great Depression: A Twenty-First Century Look Back at the Economics of the Interwar Era. Cheltenham, UK and Northampton, MA: Edward Elgar.Google Scholar
- Roosevelt, Franklin D. 1933. Statement on the National Industrial Recovery Act. June 16. http://docs.fdrlibrary.marist.edu/odnirast.html. Accessed November 14, 2013.
- Rosen, Elliot A. 2005. Roosevelt, the Great Depression, and the Economics of Recovery. Charlottesville and London: University of Virginia Press. Amazon Kindle Edition.Google Scholar
- Rothbard, Murray. 2000. America’s Great Depression. 5th ed. Auburn, AL: The Ludwig von Mises Institute. Amazon Kindle Edition.Google Scholar
- Ryan, John Augustine. 1916. Distributive Justice: The Right and Wrong of Our Present Distribution of Wealth. New York: The Macmillan Co.Google Scholar
- Sachs, Alexander. 1934. National Recovery Administration Policies and the Problem of Economic Planning. In America’s Recovery Program, ed. Clair Wilcox, Herbert F. Fraser, and Patrick Murphy Maling, 107–192. Freeport, NY: Books for Libraries Press, 1970.Google Scholar
- Smiley, Gene. 2003. Rethinking the Great Depression. Chicago: I.R. Dee (American Ways Series).Google Scholar
- Stabile, Donald R. 1984 . The Living Wage: Lessons from the History of Economic Thought. Cheltenham, UK and Northampton, MA: Edward Elgar.Google Scholar
- Stein, Herbert. 1994. Presidential Economics: The Making of Economic Policy from Roosevelt to Clinton. Washington, DC: American Enterprise Institute.Google Scholar
- Streeck, Wolfgang. 2016. How Will Capitalism End? Essays on a Failing System. London, UK and Brooklyn, NY: Verso Press.Google Scholar
- Thomas, Norman. 1970 . The Choice Before Us: Mankind at the Crossroads. New York: AMS Press.Google Scholar
- Veblen, Thorstein. 1919. Bolshevism Is a Menace – To Whom? Dial 66 (February 22): 174–179.Google Scholar
- Wikipedia. 2017. Employment Act of 1946. https://en.wikipedia.org/wiki/Employment_Act_of_1946. Accessed February 16, 2017.