By: Denise Simon | Founders Code
Government Jobs for Everyone… consider this –>
Modern Monetary Theory (MMT) is a heterodox macroeconomic framework that says monetarily sovereign countries like the U.S., U.K., Japan, and Canada, which spend, tax, and borrow in a fiat currency that they fully control, are not operationally constrained by revenues when it comes to federal government spending. MMT was pioneered by American economist and theorist Warren Mosler in 1992, along with Bill Mitchell, a university professor based in Australia and a key developer of the theory.
AIER: Modern Monetary Theory (MMT) offers some unconventional policy recommendations based on the United States’ monetary sovereignty. MMT proponents also advocate government-guaranteed jobs paying a living wage for all Americans. What would be the consequences of such a guarantee?
The Public Service Employment program detailed in a 2018 paper from the Levy Economics Institute would be funded by Washington and administered by states. It would offer full and part-time jobs paying $15 per hour plus benefits. The program’s spending would be mandatory, like other entitlement programs. The jobs would “provide public services in nonprofit community organizations, public schools, and state and local governments.”
The program could accomplish three distinct ends. The first is stabilizing aggregate demand during economic downturns. The second is instituting work relief in place of cash assistance. The third is implementing a “living wage” for all Americans.