The modern monetary theory movement proposes that the government should act as an employer of last resort,guaranteeing a job to anyone who needs one at some minimum wage.
There’s a lot to be said for the idea. Working is a necessary component of living a life of dignity for most people. Joblessness breeds all sorts of social pathologies and extended joblessness is a huge source of economic waste—skills go unused and deteriorate, human resources sit idle, and bringing someone back “online” after a long time out of the workforce can be very difficult.
One of the strongest objections to the idea of the Job Guarantee, however, is that it may distort the economy is unpredictable ways. The loss of a job for someone is often the spark that ignites the flames of entrepreneurialism. High unemployment reduces the opportunity cost of starting your own venture, for example. If you can’t find work, sometimes you make it.Read the rest at CNBC NetNet
Would Guaranteed Jobs Undermine the Brooklyn Business Revolution?
by John Carney
From what I am hearing anecdotally a lot of people — typically middle class young people — are becoming very entrepreneurial. However, this very often takes the form of less than savory enterprise, such as growing or dealing drugs, strip dancing, prostitution, and other high risk-high return "enterprises."
It's apparently pretty good training in entrepreneurship, though, again judging anecdotally based many people who made it growing and dealing and then invested in legitimate entreprise with lower risk and less margin as they got older. But then and again, a lot of others are still "in the business." But, hey, one has to make a living some way when the minimal wage of long term unemployment is zero, or the alternative is to be severely underemployed with few prospects on the horizon.