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A Job Guarantee Program


SUMMARY.  All nations will eventually require a Job Guarantee (JG) or Universal Basic Income (UBI) program because of the irreversible loss of jobs resulting from automation and globalization.  An advantage of a JG over a UBI program (besides possible cultural issues) is that the JG improves the stability of prices (ie., reduces inflation/deflation possibilities) by acting as a counter-cyclical automatic stabilizer, ie., JG spending increases automatically as private sector spending decreases, and vice versa.  The JG programs I've seen described range from wasteful to unworkable.  So I've taken a pass at one I believe is better.  Its advantages are:

LOCAL GOVERNMENT (LG) selects and manages the paid work offered.

LG Supervisor (LGS) is an elected Local Government official.
Gives local people influence over local program.

LG Manager (LGM)

LG Participant (LGP)

STATE GOVERNMENT

NATIONAL GOVERNMENT


ADDENDA


  1. Compared with the Minimum Overhead of the Job Guarantee program we've outlined above, below is a quote from that proposed by The Levy Economics Institute.  They're proposing to spend almost 50% of funding on bureaucratic overhead.  While one can argue that funding is not a problem, I see it as simply encouraging private-sector bureaucracies to devise marginal 'make work' projects to capture a large share of these monies intended for the jobless.  In addition I see no attempt in their 56-page proposal of even considering Maximum Automation.
  2. "The program’s nonwage benefit costs are set at 20 percent.  In addition, we assume that the program’s materials and other costs are equal to 25 percent of wage costs."
    PUBLIC SERVICE EMPLOYMENT: A PATH TO FULL EMPLOYMENT by L. Randall Wray, Flavia Dantas, Scott Fullwiler, Pavlina R. Tcherneva, and Stephanie A. Kelton, The Levy Economics Institute, April 2018

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