The P³ wants us all to know about the glories of full employment:
I think that definition of full employment can be updated now. It has, very obviously to allow for people to have the hours of work that they want and to be rewarded for doing so at what we now think is a living wage. But take those into account and Beveridge is the start point for an appropriate theme.
Well, OK, but Beveridge is starting a little far back. His definition – more job vacancies than unemployed – is reasonable enough. His agreement that unemployment will never be zero because it takes time to sort through job applicants, for applicants to sort through offers, is also obviously true.
At which the P³ demands that we all think hard about this and he’s going to come up with some answers.
The correct answer to which is that Chris Pissarides did think more about this, detailed exactly what that frictional unemployment was likely to be, thought through the implications of greater skill levels, greater specialisation, and what that might mean and so on. He even got the Nobel for it.
But of course the P³ has never heard of Pissarides and most certainly doesn’t update the 70 year old observations of Beveridge by the knowledge revealed by his work.
Because the P³ is ignorant of the subject he wishes to spout about.