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C.3. Assured Employment: The aim of a job guarantee program (JGP) is to lift the burden off the non-public sector’s shoulders in periods of gradual economic growth and provide all the unemployed with a job. Pay could be primarily based on the federal minimal wage and legislated advantages would also be supplied. The system would work like a pendulum: in a boom economic system employees would transfer from a JGP to the personal sector and again to a JGP during instances of financial bust.
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On the negative side, it could be argued that implementing and working a program just like the JGP could be extremely pricey. However, if the government can thereby eradicate many of the prices at present associated with paying people who find themselves not working, it is probably not a foul proposal. Unemployment may be considered as a coverage device to manage inflation as a result of when cost pressures rise throughout a sluggish,unemployment-ridden economy, rates of interest are tightened and wage calls for are lowered which together ensure inflation is stored in examine. However, it has been argued that the backwards and forwards between non-public and public sector employment and a fixed JGP wage are enough to control is the view of William F. Mitchell, Professor of Economics at Newcastle College and Charles Darwin University, Australia, who has published extensively in the areas of wage and value inflation and unemployment (Mitchell 1998).