Wednesday, March 21, 2018

Full employment

One of the leading contenders for the Democratic presidential nomination, Kirsten Gillibrand has come out in favor of a national policy of full employment.  That may sound like campaign boilerplate, but Gillibrand's proposal is to guarantee a job to any American who wants one, which would result in zero unemployment instead of the 4-5 per cent which economists tout as full employment.  The vehicle would be an infrastructure bank which would finance local projects in communities around the nation.  It would be paid for by a 5% tax on income over $200,000 on individuals.  Of course this doesn't get much play on the cable news shows which are all in on the latest tRump scandal, but it does poll extremely well, especially among blacks, latinos and poor whites.   Mainstream pundits and economists will shoot the whole idea down as unworkable and sure to be opposed by the Koch brothers and virtually every corporation in America.  These entities thrive with the existence of a large pool of unemployed and under employed workers who are desperate enough to work for whatever the corporations are willing to pay.  This depresses wages for everyone.  The issue is one which Gillibrand or whoever wins the Democratic nod in 2020 can frame as a coalition builder.  Much as tRump energized the racist and misogynist vote in 2016, a Democrat can scoop up the support of those left behind economically in the 21st century.   It's worth a try.

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