Dr. Fadhel Kaboub discusses the Job Guarantee, contrasting it with UBI and addressing its potential to solve unemployment. The podcast delves into MMT principles, government financing, and the benefits of implementing a Job Guarantee Program.
The Job Guarantee Program aims to provide dignified employment to tackle involuntary unemployment.
Taxes do not fund government spending in countries with full financial sovereignty.
Job Guarantee Program offers on-the-job training and opportunities for skill development.
Automation impacts job availability, but Job Guarantee Program focuses on meaningful work.
Advocates of Modern Monetary Theory seek to challenge traditional economic narratives and promote job creation.
Deep dives
Sovereign Governments' Financial Sovereignty
Sovereign governments like the UK and the US can afford any goods or services available for sale in their currency because they have full financial sovereignty. Unlike individuals or companies, sovereign governments do not need to earn revenue first to spend as they create money into existence.
Impact of Taxes on Government Spending
Taxes do not fund government spending in countries like the UK and the US, where the government is the issuer of the currency, making them capable of affording anything for sale in their currency without running out. Taxation serves to control inflation and maintain the value of the currency.
Job Guarantee Program
The Job Guarantee Program, proposed as a solution to involuntary unemployment, aims to provide employment to those willing and able to work. By offering jobs in community development, arts, and other meaningful areas, the program ensures a dignified way for individuals to contribute to society.
Misconceptions About Job Guarantee
The Job Guarantee Program does not imply that people can never be fired. It requires individuals to show up, be productive, and engage in suitable work. It offers opportunities for people with various backgrounds, including on-the-job training for new skills.
Addressing Automation and Job Displacement Concerns
While automation may impact certain jobs, the Job Guarantee Program focuses on creating employment in areas where automation is not feasible or suitable. It emphasizes meaningful and impactful work, skill development, and addressing community needs.
Building a Movement Around Modern Monetary Theory
Advocates of Modern Monetary Theory emphasize the importance of building a movement to promote understanding and adoption of its concepts. By engaging with activists, policymakers, and the public, the goal is to challenge conventional economic narratives and advocate for policies that prioritize job creation and economic stability.
Challenging Conventional Economic Narratives
The elevator pitch for Modern Monetary Theory challenges traditional beliefs about money, taxation, and government spending. By highlighting how money is created, circulated, and taxed, it prompts individuals to question existing economic norms and consider alternative explanations for public finances.
Encouraging Engagement and Learning
Encouraging individuals to delve deeper into Modern Monetary Theory literature and podcasts, like the Pilius MMT Podcast with Patricia Pino and Christian Riley, fosters greater understanding of economic principles and challenges preconceived notions about public finances.
Joining the MMT Community
Interested individuals can connect with the growing network of Modern Monetary Theory scholars and activists through platforms like the Levy Economics Institute, the Binzager Institute for Sustainable Prosperity, and the Modern Money Network. By engaging with like-minded individuals and resources, they can further explore and advocate for MMT principles.
Patricia Pino and Christian Reilly interview Dr Fadhel Kaboub, President of the Global Institute for Sustainable Prosperity to discuss the new policy advocated by MMT activists which is generating debate in the US after support from Senator Bernie Sanders.
What is a Job Guarantee, how does it compare to UBI and what problems, if any, would it solve?
