Debunking Economics - the podcast Jobs for all. Is it a false utopia?
May 7, 2025
This discussion dives into the concept of a job guarantee proposed by Modern Monetary Theory, questioning its practicality in today's economy. It contrasts past government employment levels with present challenges, especially during downturns. The relationship between cyclical capitalism and government intervention is explored, highlighting the need for adaptive support. The conversation also tackles inflation dynamics and its effect on employment stability, while stressing that a robust public sector is key to economic resilience and achieving equitable job creation.
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Job Guarantee Reduces Economic Volatility
- The job guarantee aims to reduce economic volatility by ensuring everyone has a job during downturns.
- It acts as a buffer to sustain wages and demand when private sector hiring stops.
Local Govt Jobs Often Temporary and Meaningless
- Phil Dobby's local government experience showed short-term government jobs often become meaningless tasks.
- Temporary job creation risks inefficiency, as jobs may not align with skills or carry purpose.
Job Guarantee Faces Flexibility Challenges
- A job guarantee requires a flexible job buffer that expands during downturns and contracts during growth.
- There's no guarantee that interesting or fulfilling jobs will be available for those newly employed.