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Beyond Pump Priming

Listed author(s):
  • Pavlina R. Tcherneva

The American Jobs Act now before Congress relies largely on a policy of aggregate demand management, or "pump priming": injecting demand into a frail economy in hopes of boosting growth and lowering unemployment. But this strategy, while beneficial in setting a floor beneath economic collapse, fails to produce and maintain full employment, while doing little to address income inequality. The alternative? Fiscal policy that directly targets unemployment by providing paid work to all those willing to do their part.

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File URL: http://www.levyinstitute.org/pubs/op_16.pdf
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Paper provided by Levy Economics Institute in its series Economics One-Pager Archive with number op_16.

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Date of creation: Oct 2011
Handle: RePEc:lev:levyop:op_16
Contact details of provider: Web page: http://www.levyinstitute.org

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