CHAPTFR TT T
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Rut. 1 f t. h 1 a approaoh, on t. h e one hand a 1 1 o w a u a to lonk at. at.at.e 1nt.ervent.1on from a lorę generał -and a morę corrent.-perRpect.1ve, 1t., on t.he ot.her hand, alao Impliea great.er reapona 1 b 1 1 1 t.y for t.he puhlio aer.t.or It.aelf. What. we sald
ahout. puhlio employeea doea not. mean, 1n fant., t.hat. any form
0 f puhlio eraployment. 1a • 1nd1reot. ly produot 1ve' . On t.he
contrary, In many areaa, puhlio employreent. may represent. a mere waat.e of reaouroea, 1n t.hat. t.he ont.put. does not. affeot. t.he aggraga te nat.ional out.put. In any* poalt. 1 ve way. Tn t.he a e oaaea puhlio Job ornat. 1 on-la llkely t.o be an 1neff1o1ent. form of Inoome r ed 1 a t. r 1 bu t. łon. Therefore, la bo nr pollolea a Im Ing dlreot.ly t.o oreat.e Joba mnat. be very oareful 1n t.he oholoe of
t.he areaa and of t.he out.put.a t.o be prov1ded t.hrough t.he newly
oreat.ed joba.
There 1 a a laat. 1aane whloh haa t.o be dealt. wlt.h. Public goóda and aerv1oea whloh are 'fnnot.lonal * to produot.ion and reproduot. 1 on at. t.he global level alao affeot. t.he 1 1v1ng
at.andarda of t.he reolplent.a In a very evident. and olear way. Tn t.he oaae of t.he worklng olaaaea, In part. 1 o u lar, 1t. la a
form of demand for hlgher wagea/aerv 1 oea . Therefore 11. la not. at. all aurprlalng t.hat. t.he demand for t.heae puhlio gooda and aerv1 oea baagrown faat.
Rut. here we have t.he aame oont.radlot.ory aapeot.a t.hat. we oan aee In t.he rolea played by wagea pa 1 d by t.he market, aeot.or. On t.he one hand, wagea are ‘ fnnot.lonal 1 t.o t.he prooeaa of
reproduot. łon In t.hat. t.hey a 1 1 o w t.he labour- foroe to reprodnoe
It.aelf and t.o enaure t.hla fundamenta 1 means of produot.ion; on t.he ot.her hand, wagea -and, In part.loular, wagea Inoreasing t.oo faat.- 1mply negat. 1ve effeot.a on t.he eoonomlo system as a whole, to t.he ext.ent. t.hat. t.hey jeopard i ze profit, a and t.he profit.ah1 lit.y of produoing and 1nveat. 1ng.
Some of t.he a e r v i o e a prov1ded by t.he puhlio sector enter 1nt.o t.he oonaumpt. 1 on of t.he 1 abonr-foroe and, henoe, t.he demand for t.bem oannot. be regnlat.ed only by t.he needa of t.he prooeaa of reproduot. łon. On t.he oont. rary, t.he demand for t. hem la alao regnlat.ed by t.he 1 abonr-foroe' s at.t.empts t.o ralae and 1iprove 11. a I1v1ng a tan darda (1n t.he aame way aa an Inoreaae
1 n monet.ary market. wagea doea). Tf t.hla aeoond faotor
underlylng t.he Inoreaae 1n t.he demand for puhlio
gooda/aerv1 oea prev«1 la, the effeot.a on t.he prooeaa of growt.h at. t.he systemie level oan be negat.1 ve , even t.hough t.he global aoolal effeota (a bet.ter aoolal system) oan be largely poalt. 1ve.
We m 1 g h t. Int.erpret. t.he reoent. oonfront.at. łon over
diamant.llng t.he Welfare at.at.e In many Western oount.riea from t.hla pe r apeot. 1 ve . Many feel t.hat. the onrrent. a1t.uat.1on la oharaot.erl7.ed by nnaooept.able dla tor tlona In t.he baaket. of gooda prov1ded by t.he puhlio aeot.or: t.here are t.oo many
aeryloea and gooda whloh, t.hough uaeful to t.he labonr-force, are ‘ nnproduot. 1 ve * for t.he eoonomlo system.