Tag Archives: job guarantee

What Would You Have the President Do? Part II, Getting to Full Employment

Responding to a Post at Naked Capitalism by Michael Hudson with some additions by Yves Smith, a commenter, objecting to the criticism of the President’s Knox College speech, issued the challenge ”What would u have him do?” in connection with his promised effort to restore prosperity to the middle class and the poor. In this series I’m giving my answer to that question. In Part I, “Necessary First Moves,” I offered and described two of these. Ending the filibuster, and using High Value Platinum Coin Seigniorage (HVPCS) to fill the Treasury General Account (TGA) with $60 Trillion in reserves. Continue reading

A job should be a right, not a privilege!

NEP’s Marshall Auerback appears on the Thom Hartman program, 20 February 2013, discussing limits on banksters’ salaries and bonuses. There is some discussion of jobs guarantee near the end of the segment (near 9:00 mark).

Full Employment as the New Progressive Paradigm

By Dan Kervick

Part Two of a four-part essay

In Part One of this essay, I evoked the dismal state of the progressive movement in the developed world, and proposed that as part of the effort to turn this situation around progressives should embrace the political ideal of a full employment economy, with an activist government permanently standing ready to provide a productive job for every person who is both willing and able to work, but who is unable to find work in the private sector.

I would hope people of every political stripe would see value in a full employment economy.  But my argument here is aimed at progressives specifically.  I want to explain why, given the kinds of defining values they have traditionally embraced – democracy, equality, solidarity and progress – progressives should be drawn to the full employment ideal.  I will first explain why, in my view, progressives should view the pursuit of a full employment economy as a political, economic and moral imperative, and embrace the full employment cause as a foundation for progressive political revival.  I will then set out a few basic proposals about how a full employment economy might be structured.

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Thomas Palley Conflates the Conservative Party in the UK with UMKC

By William K. Black

Thomas Palley argues that the UK Conservative Party’s plan to abuse the unemployed “confirms” the accuracy of his opposition to MMT theorists’ employer of last resort/job guarantee (ELR/JG) proposals.  His logical chain is as follows.

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MMP Blog 50: MMT Without the JG? Conclusion

By L. Randall Wray

Sorry for the interruption of the blog. Originally I had planned 52 blogs, one-year’s-worth, although along the way I added a few so that we would have run about 13 months. Here’s why: the blogs came from a book manuscript, the Modern Money Primer. The idea was that you would not only be a test audience, but that your questions and comments would allow me to revise the manuscript as we went along. And that worked. I think the manuscript was much improved because of this blog. You helped write the book.

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MMP Blog 48: IS THE JOB GUARANTEE NECESSARY?

By L. Randall Wray

Over the past 11 months, or so, we have examined Modern Money Theory. This is the proper paradigm for analyzing all modern countries that use their own currency.

Some have wondered whether we can separate MMT from the Job Guarantee (JG): can one accept MMT while rejecting the JG?

To be honest, I find this to be a rather strange question. We have a modern theory of Bubonic Plague. Until medical science developed a theory of disease that can be caused by microbes too small to be seen with the naked eye, all sorts of explanations of the cause of the Plague were offered. The most popular was “bad air”. The preventative measures offered (quarantine of affected individuals, evacuation of cities, burning of the property of the deceased), and improvement of public sanitation actually were quite effective—indeed, in the richer countries the plague was almost banished even before the “germ” theory of disease was ever developed. (To be sure, there were false starts—such as killing cats, that had helped keep rats in check!)

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MMP Blog #47: The JG / ELR and Real World Experience

By L. Randall Wray

There have been many job creation programs implemented around the world, some of which were narrowly targeted while others were broad-based. The American New Deal included several moderately inclusive programs such as the Civilian Conservation Corp and the Works Progress Administration. Sweden developed broad based employment programs that virtually guaranteed access to jobs.

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Responses to MMP Blog #46: The Job Guarantee – Program Manageability

By L. Randall Wray

Responses to MMP Blog #46: The Job Guarantee – Program Manageability

Sorry, late yet again. One more week of teaching and then things should be less hectic. Note I had planned for 52 MMP blogs and we are nearing the end…… But it looks like we’ll need a few more. I’m going to be a bit lazy this week, cutting and pasting the comments and providing brief responses.

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MMP Blog #46: The Job Guarantee – Program Manageability

By L. Randall Wray

As mentioned earlier, critics have argued that the program could become so large that it would be unmanageable. The central government would have difficulty keeping track of all the program participants, ensuring that they are kept busy working on useful projects. Worse, corruption could become a problem, with project managers embezzling funds. We will briefly look at some methods that can be used to enhance manageability.

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MMP Blog #45: The JG and Affordability Issues with Special Considerations for Developing Nations

By L. Randall Wray

Affordability Issues. As we have seen over the course of the previous 44 blogs, a sovereign nation operating with its own currency in a floating exchange rate regime can always financially afford an JG/ELR program. So long as there are workers who are ready and willing to work at the program wage, the government can “afford” to hire them. It pays wages by crediting bank accounts. If it credits more accounts than it debits through tax payments, a deficit results. This initially takes the form of net credits to the banking system, held as reserves. If the reserve holdings are excessive, banks bid the overnight rate down. The government can then either choose to let the overnight rate fall toward zero (or its support rate if it pays interest on reserves), or it can intervene to sell interest-paying bonds at the desired support rate; this will drain excess reserves. In no sense is the government spending on JG/ELR constrained either by tax revenues or the demand for its bonds.

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