Wednesday, May 2, 2018

J. D. Alt — Framing a Job Guarantee

Now that progressive leaders (Bernie Sanders, Kirsten Gillibrand and Corey Booker) have placed a proposed “Job Guarantee” program onto the mainstream political stage, it is essential they begin explaining the proposal’s underpinning macro-economic logic. Otherwise they lay themselves, and the proposal itself, wide open to scathing public ridicule—as exemplified by a recent Megan McArdle op-ed in the Washington Post (“A federal job for everyone?” April 25, 2018). But what should they be saying by way of explaining?…
There are basically two strategies to address this question: The first is to frame the Job Guarantee program as an “investment” that will ultimately pay dividends for the American economy and the American people. A skilled economist could surely do this, and it is the kind of argument that has been made before and accepted, apparently, by the public as legitimate— “trickle-down economics” comes to mind.
The second strategy is more difficult, but will pay bigger dividends, by far, if it can be successfully implemented: Teach the American public how modern, sovereign fiat-money actually works....
New Economic Perspectives
Framing a Job Guarantee
J. D. Alt

No comments: