LTE: Larry Kazdan of Vancouver – Letter to Editor re: Cash Crunch of Uncosted Liberal Commitments JAN 18, 2016

LTE: Larry Kazdan of Vancouver – Letter to Editor re: Cash Crunch of Uncosted Liberal Commitments JAN 18, 2016

Re:  The cash crunch of commitments: uncosted spending vows lurk for Liberals, Andy Blatchford, 01/17/2016 1

The Bank of Canada can never run out of Canadian dollars, nor can the federal government which owns it.  In keeping their promises, Liberals should not be deterred by deficits, because if necessary these can be run indefinitely.

In order to offer work to any job-seeker not currently needed by the private sector, the Canadian government should target job creation at various skill levels, and provide training for the remainder. As economist John Maynard Keynes advised during the Great Depression, “Look after the unemployment, and the Budget will look after itself.”

Larry Kazdan,
Vancouver, B.C.

Footnotes:1. Ben Bernanke, 2002, National Economists Club
Deflation: Making Sure “It” Doesn’t Happen Here

http://www.federalreserve.gov/boardDocs/speeches/2002/20021121/default.htm

But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.
2. Keynes quote
http://rortybomb.wordpress.com/2012/03/06/vsp-historical-trip-also-keynes-look-after-unemployment-and-the-budget-will-look-after-itself/

From a 1933 radio debate Keynes (bolding added):I do not believe that measures which truly enrich the country will injure the public credit…It is the burden of unemployment and the decline in the national income which are upsetting the Budget.Look after the unemployment, and the Budget will look after itself.

3. The Job Guarantee: A Government Plan for Full Employment
http://www.thenation.com/article/161249/job-guarantee-government-plan-full-employment
“The benefits of full employment include production of goods, services and income; on-the-job training and skill development; poverty alleviation; community building and social networking; social, political and economic stability; and social multipliers (positive feedbacks and reinforcing dynamics that create a virtuous cycle of socioeconomic benefits). An “employer of last resort” program would restore the government’s lost commitment to full employment in recognition of the fact that the total impact would exceed the sum of the benefits.”

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