MMT Economics

junyabee
junyabee: Full text: https://capitalismthesocietalseedsofimp-juny.blogspot.com/2019/08/mmt-economics.html


MMT and full employment

So if MMT prescribes various regulations (and, where necessary, taxes) to control inflation, while keeping interest rates at zero, how does it plan to achieve full employment?

Simple: a job guarantee.

This is an idea that predates and transcends MMT as a school of thought, with advocates among non-MMT economists like William Darity Jr. and Darrick Hamilton, and a history of support from American labor unions and civil rights leaders. The basic concept is that the government would offer, as a right of citizenship, a job at minimum wage (usually $15 an hour for these purposes) with benefits, working for the government or a nonprofit, to any adult who wants one.

This is different from subsidized employment, which exists in limited forms now, and even from the massive public works programs of the New Deal like the Civilian Conservation Corps and the Works Progress Administration, which employed millions but did not guarantee jobs to all.
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