Full Employment through Social Entrepreneurship

By Pavlina Tchnerva

Pavlina R. Tcherneva discusses her proposal for eliminating unemployment now and forever by running a job guarantee program through the social  entrepreneurial sector. She examines the problems with conventional stimulus policies and the price-stabilization features of her proposal.

It is the 12/10/2103 interview and starts at 17:30 min mark.

2 responses to “Full Employment through Social Entrepreneurship

  1. I like the idea of JG, and learned more about it from this interview. I am still wrestling with its impact on small businesses. I am a SCORE mentor, and small businesses are more than just the backbone of this country’s employment. They also seem to be the whipping post of big business, consumers, workers, government, and possibly academics.

    Under JG, local governments and/or social entrepreneurs can get Federal money to employ those willing and able to work, let’s say for now, at a minimum wage below a living wage for a single worker, but for a couple the two jobs crest that for a household.

    Case A: A significant improvement to library services in a community, to include rounding up used print books. But the local bookstore doesn’t exactly need anymore competition than it’s getting from Amazon and e-readers. The bookstore goes out of business. More people unemployed.

    Case B: A community wants to set up a food co-op. It is so successful, that the local grocery store and a chain grocery store go out of business. The chain grocery store industry is well organized by labor. So, these jobs are lost, and some pretty good jobs at that.

    Case C: A nonprofit decides they could use a dozen people to cold-call for donations. Do we really need any more noise pollution in our homes? They are successful. But as we know from MMT the economy is essentially a zero sum game played between the goalposts of asset inflation/bubbles and private debt bubbles—on a field of private savings. (If you hold government spending and the trade deficit constant.) So, all over the country there are now less dollars available to be used at small businesses. (Unless, the size of the JG spending is greater than donations received.)

    Case D: From the rest of this podcast the point was made how great it is to associate with people of similar values and social proclivities. So, even at a minimum wage, many persons will opt out of say, cleaning hotel rooms, washing dishes, picking up and putting down heavy things, even for a bit more money, because it is way more fun to do social organizing online. Our economy actually does need people to help us bake the bread. More businesses go belly up for lack of labor.

    Case E: A for profit day care center, a valuable resource in any community, is replaced by a social entrepreneur with JG funds who essentially can unfairly compete—with all the labor cost removed from the business model. The for-profit day-care goes out of business and more people are unemployed. Maybe on this one there is a net gain of jobs because more people can use day care, but they are not transitional jobs as billed, but permanent gov’t jobs.

    I believe all these cases are deflationary unless you increase the JG wage. But doesn’t raising the JG wage just accelerate the deterioration of small businesses in the private sector? Isn’t small business the goose that lays the golden eggs called jobs?

    I could, and probably will, go on with these examples for my own edification, and my work in near-consensus politics, but am curious as to how JG addresses these concerns?

  2. The JG wage has to be a base wage. Private businesses can then hire workers by paying a bit more that the JG wage. I think it is a no-brainer; of course it is best to have people working to produce products and services for others so they, in turn, can enjoy and pay for the products and services they need. How can anyone logically suggest that having people unemployed and unproductive is good for the society? Economics seems often to thrive on fairy tales but we need to get serious and reason with logic at some point in time.