Monday, February 15, 2010

Here's Someone Who "Gets It"

Here's an excerpt of a long-ish piece by one L. Randall Wray that finally gets to the heart of my idea about jobs - that the private sector's failure to meet society's needs for employment is not fix-able via half-measures like modest tax incentives:

But what I am advocating is something both broader and permanent: a universal jobs program available through the thick and thin of the business cycle. The federal government would ensure a job offer to anyone ready and willing to work, at the established program compensation level, including wages and benefits package. To make matters simple, the program wage could be set at the current minimum wage level, and then adjusted periodically as the minimum wage is raised. The usual benefits would be provided, including vacation and sick leave, and contributions to Social Security.

Note that the program compensation package would set the minimum standard that other (private and public) employers would have to meet. In this way, public policy would effectively establish the basic wage and benefits permitted in our nation--with benefits enhanced as our capacity to provide them increases. I do not imagine that determining the level of compensation will be easy; however, a public debate that brings into the open matters concerning the minimum living standard our nation should provide to its workers is not only necessary but also would be healthy.

Once our friends on the right (and frankly many on the left!) get over their revulsion at the idea that the government can act directly in the market as a market participant, this is the only way to go. The only question is how much damage will we cause ourselves before we finally take the only step that will work?

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