Opinion: The latest progressive economic policy is designed to stabilize the US labor market — and it looks a lot like the military. By pearkes.
, a jobs guarantee involves production instead of simple transfer of resources. In plain English, participants in the program would be providing goods or services we as a society think are being under-supplied such as infrastructure improvements, childcare, or healthcare.
Wages for work as part of the guarantee program would in most cases serve as a wage floor, forcing private sector employers to pay above what the program was offering in order to attract and retain talent; that would to a large degree make minimum wages less relevant. By preventing large pools of workers from dropping out of the labor force during periods of weak economic activity, losses of skills and networks with other workers are avoided. This preservation of skills and labor force attachment would likely improve labor productivity over time.
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