This is a summary of the arguments for allocating ELR people to EXISTING employers rather than to specially set up schemes or “employers” as was the case with the WPA in the 1930s.
Read it Ralphonomics
Government as employer of last resort.
by Ralph Musgrave
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Where is the incentive for employers to train new employees instead of poaching them?
Abolishing the minimum wage or allowing workers to participate in the black market (which is already significant) would be just as effective. In Canada, wage subsidy programs are of benefit to the individual, but do not appreciably lower unemployment. There are administrative costs for these programs, as with other welfare to work schemes. The black market administrative cost to employ marginal workers is zero.
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