Monetary System Reality
Many people think that national currencies come from the private sector. That is not true. The governments of the US, UK, Australia, Canada, Japan and, in fact, most national governments have the sole authority to issue currency.
Infinite Issuance Capacity
Sovereign currency-issuing governments can never go broke. They cannot run out of their own currencies. Because their currencies aren’t pegged to gold or another currency, the supply of currency available to these governments always equals infinity.
Taxation and Borrowing
Sovereign currency-issuing governments never tax or borrow to fund spending, because they issue the currency that is used to pay taxes and buy bonds.
The national debts of sovereign currency-issuing governments are not actual debts, because the “debt” is denominated in the currency that only the national government issues.
The Federal Job Guarantee Proposal
The Job Guarantee creates a pool of workers employed in their communities to perform work that is socially beneficial (constructing nature trails, protecting valuable habitats, clearing urban blight - the list of jobs is indeed endless) Private sector employers may hire from this pool at any time.
Because the Job Guarantee is a voluntary initiative, in good economic times, the pool of Job Guarantee workers will shrink as that labor moves to higher paying private sector jobs. In a downturn, the pool will expand as more workers who lose their private sector jobs transfer into the Job Guarantee. As a result, the Job Guarantee brings an end to all involuntary unemployment whilst over time, enhancing the private sector.
The Job Guarantee is a powerful automatic stabilizer for the economy and will result in a greater positive impact on output than that which unemployment insurance and welfare payments alone currently provide.
Perpetual Full Employment
Guarantees a job at a decent wage for all who are willing and able to work, maintaining a situation of full employment indefinitely.
By fixing the floor price of labour, the Job Guarantee provides a nominal anchor against inflation.
Automatic Deficit Management
The pool of workers and the deficit shrink and expand automatically based on the condition of the economy.
Administered by Communities
Funded by the federal government, but all decisions are made by local communities based on their needs.
The Hunter Keane Institute
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Unemployment is a public health hazard.
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