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Guaranteed jobs through a public service employment programme for the United States
... Total demand for consumption goods is: (20) Notice that each income type and each wealth type are marked by a different propensity to consume. In line with the empirical evidence, we assume that: . ...
... Monte Carlo simulations are used to define the sensitivity range of model results under alternative scenarios or experiments. 20 Model files and the code structure are displayed by Figure 1. 21 Results for each experiment are compared with the model baseline, which has been empirically validated through an auto-and cross-correlation analysis of the main output components. ...
The purpose of the paper is to provide a comprehensive comparison of fiscal and monetary policies with different forms of public expenditure, including a job guarantee (JG) plan. Our key findings are as follows. First, expansionary fiscal policies (including JG) are effective in reflating the economy independently of the way in which they are funded. However, deficit monetization should be expected to be more effective in the short run, while bill-funded government spending is likely to be more effective in the long run. Second, expansionary monetary policies are reflationary in the short run. However, they may have deflationary effects on the economy in the medium to long run. Third, a lower reserve requirement can reflate the economy, but the expected impact is rather weak. Fourth, non-selective tax cuts are effective, but less effective than government spending. Fifth, the impact on the price level is harder to predict than the impact on output. Sixth, conventional spending outclasses JG in terms of GDP growth and inflation rate control, but the JG is a better option in terms of employment results and income distribution.
... A jobs guarantee (e.g., Tony Ramsay 2002) can be more forcefully pursued, and achieve a number of economic objectives (e.g. L. Randall Wray et al. 2019). Alternatively, or complementarily, workday regulations could be used to create positions in private companies in order to reduce the pool of surplus labor. ...
We consider how market environments can perpetuate the stratification of societies and economies. Markets are sets of institutions. These institutions are emergent outcomes of interactions in ongoing socio-economic processes. They entail societies? rules, norms and values; and market environments and agents? behavior therein will reflect them. Markets are also complex systems. Complex systems dynamics allow us to identify additional endogenous mechanisms contributing to the perpetuation of stratified structures in market economies. In capitalism?s drive towards concentration and centralization, and the concomitant consolidation of corporate power, further factors leading to stratified socio-economic outcomes emerge. We formulate policy considerations based on the analytical results presented. One focus is what measures may help reduce stratification and change the dynamics that reconstitute it. The other focus draws on the fact that policies are an output of the system, which means that changes to the structure itself may have to be required to advance changes that can have an equitable impact.
... Post-Keynesian and Kaleckian economists would agree that there are insufficient market forces leading the economy to full employment, and it is through government policies, including fiscal policy, that full employment may be achievable. MMT proponents (for example, Wray et al. 2019;Kelton 2020) argue that full employment can be secured through a 'job-guarantee programme' under which jobs would be provided at a basic wage to all otherwise unemployed. This type of programme would act as an automatic stabiliser as far as employment is concerned and a budget deficit emerges appropriate for securing full employment. ...
This paper provides remarks on modern monetary theory (MMT) from a Kaleckian perspective in response to a paper by Drumetz/Pfister. The distinction between initial financing and final financing is drawn up to argue for clear separation of how expenditure is financed and funded, and pointing to the confusions that have arisen. Some issues of crowding in and crowding out are raised. Some aspects of inflation and hyper-inflation are then discussed. The conditions for the establishment of full employment are elaborated. While MMT has focused on financing of government expenditure and aggregate demand, Kaleckians and post-Keynesians have analyses and theories on the operations of the whole economy which differ sharply from those of mainstream economists.
... MMT authors have often associated themselves with proposals under the heading of employer of last resort/job guarantee (see, for example, Wray, 1998;Wray et al., 2019). As the term "job guarantee" or something similar have been used in association with a range of policy proposals which do not share many of the features of the MMT job guarantee schemes, I will refer here to job guarantee/employer of last resort (JG/ELR) to emphasise that it is the schemes proposed by the MMT people which is being discussed here. ...
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