is an increase in capacity. This is true also for services, in a full capacity world as I have to hire a new employee and to lure them from the current job I have to pay them more. In GD1 the wage paid to people for the CCC, WPA, TVA, etc was $7,000 per year in 2008 dollars. They produced results that had value above that payment therefore national wealth increased. Remember, Katrina increased GDP becuase of all the goods and services that were needed to rebuild. The net worth of our nation decreased. The full employment has to be productive (increase output) otherwise it just increases prices. Peter D Reply: December 20th, 2010 at 5:54 pm Tom Hickey: "There is no problem with importing goods from Asia as long as the government realizes it has the ability to create simultaneous full employment in the US and that it can do so without either endangering its finances or generating inflation, the two bogeymen now preventing this." But isn't there a concern as to what is the quality of this full employment? Like Martin, I'd like to take it to the logical extreme: all US workers employed in govt programs via Job Guarantee or in services, all the "productive" stuff overseas. This is a not a healthy society, I believe. Isn't there more to cost-benefit analysis than just getting stuff for money? for me the job guarantee has a 'target level' of maybe 3% of the work force. So if the