Balancing Employment, Liberty, and Opportunity

Written By: Lance Piatt

In the story of Exodus 5, Pharaoh demanded relentless labor from the Israelites, pushing them into what can only be described as a government-mandated state of “full employment.” This ancient narrative provides a compelling parallel to modern debates surrounding employment policies and economic theories – what is “free market employment balance”?

The Exodus 5 Parallel: Pharaoh’s Employment Strategy

Pharaoh’s approach was clear: more work, less pay, and no time off. His goal was to maximize productivity through sheer force, disregarding the well-being and liberty of the workers. This method ensured that the Israelites remained perpetually occupied, leaving no room for rest or personal growth. The result was a form of slavery disguised as full employment.

Critique of the “Full Employment” Ideal

Today, some critics of the free market employment balance and proponents of Keynesian economics advocate for policies aimed at achieving full employment. On the surface, this goal seems noble—after all, who wouldn’t want everyone to have a job? However, the means by which this is achieved can sometimes mirror the oppressive tactics seen in Exodus 5.

Unethical and Immoral Practices

In certain scenarios, the drop in unemployment rates and the rise in employment figures are achieved through unethical and immoral practices. These can include:

Forced Labor: Similar to Pharaoh’s methods, some governments or organizations may implement policies that coerce individuals into work, often in poor conditions and with inadequate compensation.
Reduced Liberty: Employment policies that prioritize numbers over quality of life can lead to a loss of personal freedoms. Workers may find themselves trapped in a cycle of relentless labor with little to no opportunity for rest or personal development.
Exploitation: The drive for full employment can sometimes result in the exploitation of vulnerable populations, where the primary focus is on productivity rather than the dignity and rights of the workers.

The Misconception of Full Employment

The concept of full employment, as seen through the lens of Exodus 5, reveals a critical misconception: equating high employment rates with economic and social well-being. Pharaoh understood that he could gain something for nothing through forced labor, a practice that benefits the few at the expense of the many.

The Goodness of the Free Market

In contrast to the coercive methods described above, the free market offers a path to genuine full employment, characterized by voluntary agreements between employers and employees. This system respects individual liberty and promotes both work and leisure.

Voluntary Agreements

In a free market, employment relationships are voluntary. Both parties—employers and employees or contractors—enter into agreements by mutual consent, ensuring that the terms of employment are acceptable to both. This fosters a more balanced and fair working environment.

Balance of Work and Leisure

The free market allows individuals to choose their work arrangements, balancing their need for income with their desire for leisure. This flexibility is a stark contrast to the relentless labor seen in Pharaoh’s Egypt and in some modern employment policies driven by government mandates.

Natural Equilibrium

Without government overreach, the free market naturally settles into an equilibrium where:

Choice: Individuals have the freedom to choose their jobs, leading to higher job satisfaction and productivity.
Opportunity: There are diverse opportunities available, catering to various skills and interests.
Profits: Businesses can thrive, creating more job opportunities and contributing to economic growth.

Comprehensive Full Employment

True full employment in a free market encompasses not just labor but also land, raw materials, tools, and accurate economic information. This holistic approach ensures that all resources are utilized efficiently, promoting overall economic health and sustainability.

The Market Owners

In the market, there are several key players, or “owners,” each contributing to the production process:

The Capital Owner: This individual owns the capital and all the resources required for production. They invest in the infrastructure, machinery, and materials necessary to create goods and services.
The Skilled Owner: This owner possesses the skills and expertise associated with production. Their knowledge and abilities are crucial for transforming raw materials into finished products.
The Planner Owner: This person is responsible for planning the production process. They strategize, coordinate, and ensure that everything runs smoothly and efficiently.
The Goods and Services Owner: These are the tangible and intangible products brought to the market. They represent the final output of the production process and are sold to consumers.

The Window to Success: A Complex Series of Joint Ventures

The market operates through a complex series of joint ventures that bring together employers, employment opportunities, and market-clearing wages through various tasks. This process is entirely voluntary and free from government intervention, which often disrupts the natural order.

Vision and Capital

The initial window to success starts with vision and capital. Entrepreneurs and investors who see potential opportunities and are willing to risk their capital lay the foundation for production and employment.

Labor and Skills

Labor and skills are brought in by those who possess the expertise necessary for production. These individuals contribute their abilities and knowledge, becoming essential parts of the production process.

Tools, Materials, and Land

The availability and efficient use of tools, materials, and land are critical. These resources are managed by planners who ensure they are used effectively to produce goods and services.

Liberty and Competitive Bidding

Liberty within the market itself is paramount. Competitive bidding ensures that the playing field is level, and the “water level” of the market finds its proper balance. This ongoing endeavor allows for natural adjustment, where those who excel are rewarded, and those who do not contribute effectively are replaced.

The Stone: Government Intervention

The “stone” in this process is government intervention, which often guarantees jobs not out of a genuine desire to promote employment, but rather to secure political votes. Politicians typically seek to maintain power, often at the expense of individual liberty.

The Great Depression: A Historical Example

A notable example of this intervention is the Great Depression of the 1930s. The Western world, wobbling from the central bank inflation of the 1920s, experienced an artificial boom followed by a devastating bust. Keynesian policies, championed in “The General Theory” in 1936, were implemented by Herbert Hoover and the “new” Republican dealers. Governments interfered with labor pricing, capital, markets, and trade. This interference was widespread, affecting countries like the USSR and Nazi Germany. By 1939, unemployment continued to soar.

The War Machine and Keynesian Economy Religion

With the onset of World War II, the war machine was in full swing. Keynesian economic policies gained traction within governments, leading to central planning becoming the modus operandi. Wartime planning was pervasive, and central banks engaged in the monetization of debt to fund the war efforts. This period saw the expansion of government intervention in the economy, establishing a pattern that would influence economic policies for decades to come.

World War II: The Ultimate Full Employment Program

The outbreak of World War II essentially replaced or removed between 60-100 million people. This war became the greatest government-imposed full employment program of the twentieth century, providing jobs for all and significantly reducing the workforce. This led to higher employment rates, and many citizens accepted this as a solution. However, it came at an immense human cost.

The Costs of Government Intervention

The cost of this intervention is multifaceted, resulting in the loss of freedom, capital, labor, leisure, and ultimately, purpose. Tyranny proves beneficial to both foreign and domestic oligarchs, often right under the noses of the citizenry.

Technology and Central Planning

When technology needs to advance, the pathway is planned long in advance. Oddly, technological advancements seem to arrive just in time to “fix” problems—almost as if it were planned all along. Central planning extends into all facets of the economy, often leading to predetermined outcomes that stifle true innovation and growth.

Consequences of Overreach

The consequences of government overreach include reduced economic growth and a poorer society. As federal bureaucracy increases, civil service laws make it almost impossible to fire bureaucrats, leading to inefficiency and complacency. Full employment in the federal and state job markets transforms into a welfare-like atmosphere, where the job market stagnates.

The Vicious Cycle

The government assures citizens, “Don’t worry! We have you covered. You aren’t working, but we’ll pay you anyway.” This perpetuates dependency and ensures political loyalty at the voting booth, creating a cycle that undermines the free market and individual initiative.

Legitimate Goals of Employment, Leisure, and Service

The goals of full employment, more leisure, and service outside the wage system are legitimate. Achieving these goals requires liberty and the ability to make advantageous deals for both sides, which then fosters opportunity. Our Constitution and the Bill of Rights were founded on the principle of being “one nation under God” to ensure these freedoms.

Conclusion: A Call for Balanced Employment Policies

The story of Exodus 5 serves as a powerful reminder of the dangers of pursuing full employment through unethical means. While the goal of reducing unemployment is important, it must not come at the cost of worker liberty and ethical standards. Instead, a balanced approach that promotes both employment and the well-being of individuals will lead to true and sustainable prosperity.

By learning from the past and advocating for fair and ethical employment practices, we can create a society where work is a source of dignity and freedom, not a modern form of slavery. The goodness of the free market, with its emphasis on voluntary agreements, choice, and balance, offers a path to genuine full employment that respects both workers and employers. Through a complex series of joint ventures, the market thrives, benefiting all participants and promoting a healthy and dynamic economy. The process, driven by vision, capital, labor, tools, materials, and land, ensures that opportunities are maximized, and liberty is upheld, leading to a prosperous and balanced society.

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