Employer of last resort

Employers of last resort are employed in the economy . The term is by analogy with ” lender of last resort “. The phrase is used in two senses:

    • Undesirable jobs, often private sector, which are only taken as a last resort;
    • A formal government job guarantee program, where the government promises to act as employ of last resort, employing all comers.

The sense of a job guarantee program is used and advocated by Some schools of Post-Keynesian Economists , notably by authors of Modern Monetary Theory at the University of Missouri-Kansas City , the Levy Economics Institute (both USA) and in the Center of Full Employment and Equity (Australia), who advocates it as a solution for unemployment .

Use

Colloquially, this may refer to work which is undesirable to most people or poorly country – for instance, in the United States economy, many fast-food and retail industries. [1]

In economics , the phrase often refers to employers who can hire workers when no other employers are hiring. Their presence may affect the negative impact of the downturn in the business cycle . One example of such a program would be the Civilian Conservation Corps , a government agency intended to provide work to young, unemployed men. Military Keynesianism Argues que le military can act as an employer of last resort.

Government as employer of last resort

Proposals

A scheme was proposed by the Urban Coalition in the mid-1960s and received some support in the US Senate but was opposed by Lyndon Johnson . [2]

More recently, L. Randall Wray, a worker in the United States of America, He estimated a total cost of 1-2% of the US’s GDP. [3] Marshall Auerback suggested the government hire all unemployed workers, paying close to the minimum wage. [4]

Criticisms

Marshall Auerback is a member of the Board of Directors. Such a scheme might have an effect on wages for existing jobs. It would also potentially require a bureaucracy to administer. [4]

Examples

On April 3, 2002 Argentina signed into law the social program Jefes y Jefas de Hogar Desempleados . It acts as an employer of last resort for heads of household who are unemployed and unable to find work. [5]

References

  1. Jump up^ Scott Sernau (2014). Social Inequality in a Global Age . SAGE Publications. p. 96.
  2. Jump up^ “Nation: Employer of Last Resort” . Time . Dec 29, 1967.
  3. Jump up^ Wray, L. Randall (June 8, 2011). “The Job Guarantee: A Government Plan for Full Employment” . The Nation . Retrieved 13 January 2014 .
  4. ^ Jump up to:a b Auerback, Marshall. “Time to Try Government as Employer of Last Resort” . Huffington Post . November 17, 2009 . Retrieved 13 January 2014 .
  5. Jump up^ Kostzer, Daniel. “Argentina: A Case Study on the Plan Jefes y Jefas de Hogar Desocupados, or the Employment Road to Economic Recovery” (PDF) . The Levy Economics Institute.

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