John Carney asserts....
...The JG is a creature of happier times and smaller economies. Bill Mitchell explains that he thought up the idea while he was a student at the University of Melbourne. The total employed population of Australia is only about 11.5 milllion. Australia currently has an unemployment rate of around 5.3 percent, which translates into 635,800 jobless people. In other words, a jobs guarantee in Australia might be workable. But it doesn't scale to fit the United States. sourceNeil Wilson responds in a comment here.....
Of course it scales.
Once you state that the government will fund the employment of anybody unemployed at a fixed price (restricted to non-profit making entities presumably) then two things will happen. (i) non-profit making entities will go wild recruiting (ii) profit making entities will go wild recruiting to service the demand created by (i).
And then you see where it stops - bearing in mind that (ii) necessarily disciplines (i) because (i) is at a fixed price and can't compete.
Eventually you'll reach a higher level of employment across the economy - and then you see what is left on the unemployment register.
John Carney keeps repeating nonsense I have already debunked.
There is no increased bureaucracy - the state just pays the wages at a fixed price to certain entities. If the US hasn't got a system to do that, then it just needs to copy the UK one. We can certainly do it with the public systems already in place.
If 'undermining' the private sector means getting rid of slave labour jobs worse than the guaranteed jobs, then I consider that a win. The private sector does not have a right to exist, or profit at the cost of anybody else.
Remember the other job of the government is to eliminate the private sector's tendency to create externalities.
The objections I've seen so far basically boil down to a crowding out argument: "I want the unemployed to be paid less, so I can have more"
Yet surely, morally, if you advocate a system where necessarily there are people unemployed, then you should fully compensate them for their loss due to your system design.
Unemployment is a systemic failure. It need not exist. MMT shows how to eliminate it.January 6, 2012 5:09 AM