An Argument and an Outline for a New Employment Scheme

Abstract

Liberalism is celebrating triumphs in these years. As faith in the welfare state and Keynesianism began to crack in the 1970s, capitalist principles were revitalised and the old virtues and dogmas were found and dusted. Now all that restrained the free competition in the market were considered a danger to the growth and the welfare. The impact of trade unions on wage formation should be limited, the welfare state should be reduced, and ‘modernised’ and the incentive structure strengthened by reducing social policy standards. Unemployment was again considered a natural part of the economy where individual choices were crucial to whether you were unemployed or not: lower your wage claims and you would probably get a job. (...)