Carlos Maciel '14 on jobs guarantee programs
Economics and international studies major Carlos Maciel ‘14 is a founder and editor of a new blog site “The Minskys.” He also is a research fellow at the Binzagr Institute for Sustainable Prosperity.
In a recent blog post, Maciel, with co-author Vitor Mello, discusses the merits of a job guarantee (JG) program.
Maciel notes: “Simply put, JG is a direct public employment policy where all of those people who are willing and able to work are guaranteed a job given that these individuals meet some basic employability requirements.
“Most proponents of JG establish that these jobs should pay a basic, fixed, uniform wage plus full medical coverage and free child care (the latter can be provided by JG workers themselves). The goal of the program should be to ensure that all full-time JG workers are able to obtain a living standard that is above a reasonable poverty threshold. “
“Thus, this sort of program go a long way in addressing poverty. Furthermore, it would also target another major economic problem, the stagnation of real wages and the currently low minimum wage granted to US workers. The JG wage would instantly become the minimum wage for the entire economy: workers in other sectors that are receiving less than the JG wage would be very compelled to take one of those guaranteed jobs, and employers would have to raise their salary offers in order to keep their workforce. Finally, the wages would also act as price anchor, which improves upon the stability of the economy. “