Abstract
Greece’s current predicament is not mainly due to structural problems—or at least, will not be cured by attacking presumed structural problems. Greece is surely not alone in suffering from the tremendous rise of unemployment (and especially youth unemployment) and as well falling GDP. This chapter argues that the main problem is with the setup of the EMU, which separated member countries from their currencies. This means that with the exception of the handful of members who can run “beggar thy neighbor” trade surpluses (forcing euros to flow from other members), the majority of countries using the euro face fiscal constraints that force austerity. This chapter proposes a direct job creation program modeled on the American New Deal, funded by the center to promote full employment through “fiscal transfers” that would relieve the constraints.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
For a proposal to create a job program for Ireland, see L. Randall Wray, Working Paper No. 707, February 2012 The Euro Crisis and the Job Guarantee, available here: http://www.levyinstitute.org/publications/the-euro-crisis-and-the-job-guarantee.
- 2.
For a recent proposal to create a parallel currency, see: A program proposal for creating a complementary currency in Greece, by Trond Andresen and Robert W. Parenteau, available here: http://www.paecon.net/PAEReview/issue71/AndresenParenteau71.pdf.
- 3.
For a detailed estimate of program costs, see: Research Project Reports, June 2014, Responding to the Unemployment Challenge: A Job Guarantee Proposal for Greece, by Rania Antonopoulos, Sofia Adam, Kijong Kim, Thomas Masterson, and Dimitri B. Papadimitriou, available here: http://www.levyinstitute.org/publications/responding-to-the-unemployment-challenge-a-job-guarantee-proposal-for-greece; and Responding to the Unemployment Challenge: A Job Guarantee Proposal for Greece—An Addendum, by Rania Antonopoulos, Sofia Adam, Kijong Kim, Thomas Masterson, and Dimitri B. Papadimitriou, available here: http://www.levyinstitute.org/pubs/rpr_may_15.pdf.
References
Godley, Wynne. 1997. “Curried Emu—The Meal that Fails to Nourish.” Observer, London, August 31.
Grand Central. 2015. “Grand Central: ECB Turns Up Heat on Governments.” The Wall Street Journal’s Daily Report on Global Central Banks, May 22.
Kelton, Stephanie, and L. Randall Wray. 2009. “Can Euroland Survive?” Levy institute, Public Policy Brief No. 106, November. http://www.levyinstitute.org/publications/can-euroland-survive
Minsky, Hyman P. 2013. Ending Poverty: Jobs, Not Welfare. Levy Economics Institute, Minsky: New York.
Papadimitriou, Dimitris, and L. Randall Wray. 2012a. “Euroland’s Original Sin.” Policy Note 2012/8, July. http://www.levyinstitute.org/publications/eurolands-original-sin
Papadimitriou, Dimitris, and L. Randall Wray. 2012b. “Fiddling in Euroland as the Global Meltdown Nears.” Public Policy Brief 122. www.levyinstitute.org/pubs/ppb_122.pdf
Taylor, Nick. 2008. American-Made: The Enduring Legacy of the WPA: When FDR Put the Nation to Work. Tantor Media, Taylor: New York.
Tcherneva, Pavlina. 2015. “When a Rising Tide Sinks Most Boats.” Policy Note 2015/4, March. http://www.levyinstitute.org/publications/when-a-rising-tide-sinks-most-boats-trends-in-us-income-inequality
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2016 The Author(s)
About this chapter
Cite this chapter
Wray, R. (2016). Jobs Not Growth: An Alternative Path for Development. In: Petrakis, P. (eds) A New Growth Model for the Greek Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-58944-6_16
Download citation
DOI: https://doi.org/10.1057/978-1-137-58944-6_16
Published:
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-58943-9
Online ISBN: 978-1-137-58944-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)