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Larger deficits are necessary and proper means to mitigate unemployment as the far greater evil in terms of human welfare.
William Vickrey
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It's insane to try to balance the budget.
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Increasingly prices are set by sellers to raise their prices without a loss of sales sufficient to wipe out the gain.
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If unemployment could be brought down to say 2 percent at the cost of an assured steady rate of inflation of 10 percent per year, or even 20 percent, this would be a good bargain.
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I define genuine full employment as a situation where there are at least as many job openings as there are persons seeking employment, probably calling for a rate of unemployment, as currently measured, of between 1 and 2 percent.
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Firms would be given initial entitlements to gross markup on the basis of past performance. These entitlements would be transferable and a market in them would be developed.
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Don't you think you're just rearranging deck chairs on the Titanic?
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Deficits do not in themselves produce inflation, nor does a balanced budget assure a stable price level.
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Currently a level of unemployment of 7 percent or more seems to be required to keep inflation from accelerating, a level quite unacceptable as a permanent situation.
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Balancing a nominal budget will solve nothing, and attempting to achieve such a spurious balance will produce much mischief.
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