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In the 30s the liberal Swedish government ran a program with relief-work in effect building roads and stuff for below existing wages (so not to crowd out private enterprise).

The unions demanded and the soc-dems enacted another program with jobs for all at decent wages (compared to average existing wages). That was a hit and marked the start of some 50 years of full employment policies.

So I would say jobs for all with decent wages looks like the sensible demand.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Tue Jan 31st, 2012 at 02:24:37 PM EST
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You mean we've known the answer for 80 years but are pretending we don't?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Jan 31st, 2012 at 02:37:43 PM EST
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It got lost 30 years ago.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Jan 31st, 2012 at 02:52:10 PM EST
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Only one thing remains: the vague collective knowledge that "Keynes was wrong".

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Jan 31st, 2012 at 04:26:26 PM EST
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I'd settle for at least the unions remembering their own history.

Instead I some time ago saw a documentary with a former union boss who was minister of employment or some such under Persson. There he explained that since unemployment was necessary they deemed that the young could handle it better and be more likely to get a job later on then older workers, so their politics aimed at protecting older workers and letting young people bear the burden of unemployment.

Now, of course the former minister should be credited for actually admitting that they were running a policy for unemployment - most would deny it. But it is tragic to see what has become of the union-soc.dem movement when the best they can come up with is pitting generations against each other. And of course the right-wing has used the conflict to gain youth votes in exchange for promises of low-paying jobs through lower employer taxes on the young.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Tue Jan 31st, 2012 at 05:38:47 PM EST
[ Parent ]
a former union boss who was minister of employment or some such under Persson ... explained that since unemployment was necessary

<facepalm>

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Tue Jan 31st, 2012 at 08:33:29 PM EST
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How else are we going to keep wages inflation down?
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Feb 1st, 2012 at 01:13:18 AM EST
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There were downsides. The strangling effects of the system became apparent during the 70's and 80's, and it all fell to pieces in the early 90's. Minsky would have had something to say about it...

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Sun Feb 5th, 2012 at 01:35:17 PM EST
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