We should prioritize full employment over balancing the budget from "summary" of The Deficit Myth by Stephanie Kelton
The idea that we must first balance the government's budget before we can focus on achieving full employment is a common misconception. In reality, these two goals are not mutually exclusive. In fact, prioritizing full employment can actually help to improve the government's fiscal position in the long run. When more people are employed, they contribute to economic growth through increased consumer spending and tax revenues. This, in turn, can reduce the need for government spending on social welfare programs and other forms of economic stimulus. By prioritizing full employment, we can create a virtuous cycle of growth that benefits both individuals and the government. Furthermore, maintaining high levels of unemployment is not only detrimental to individuals and families, but it also represents a waste of valuable human resources. When people are unable to find work, their skills and talents go unused, leading to a loss of productivity and innovation in the economy. This is a cost that cannot be measured solely in terms of dollars and cents. By shifting our focus from balancing the budget to achieving full employment, we can better address the underlying causes of economic inequality and instability. When more people are able to participate in the labor market, they have greater opportunities to improve their standard of living and contribute to the overall prosperity of society. This, in turn, can lead to a more sustainable and equitable economic system for all.- Prioritizing full employment over balancing the budget is not only a more humane approach to economic policy, but it is also a more effective one in the long run. By investing in people and creating opportunities for meaningful work, we can build a stronger and more resilient economy that benefits everyone.
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