Skip navigation

An ELR (employer of last resort) program is a government jobs program to employ labor for which there is no bid in the private market. An ELR program would provide a “buffer stock” of jobs to ready, willing and able labor; typically at some minimum wage.

Proponents of a job guarantee argue five primary points:

1.  The job guarantee would allow unused labor resources in the economy to match up with needed infrastructure improvements such as building bridges, roads and levees.  This would provide greater infrastructure for private sector activity.

2.  The job guarantee would allow for greater price stability in the economy.  As there is effectively “no bid” for the labor, government could spend modestly on a program without causing inflation.  Furthermore, as the economy improved and workers transitioned back to the private sector, the job guarantee program would employ fewer workers and result in less government spending.

3.  The job guarantee would allow for a greater level of economic activity in the economy, increased spending on other goods and services and cushion against downturns; preventing many personal bankruptcies and foreclosures.

4.  The job guarantee would enable the government to spend less on other “welfare” type transfer payments and keep the skills of employed workers sharp, enabling them to more easily transition to private sector employment when growth resumes.  In addition, “need” based crime would be reduced.

Finally, proponents argue, a job guarantee is the only way to to fully close the spending gap (resulting from government taxes and private savings) and eliminate unemployment.

Warren Mosler, a former candidate for Senate in Connecticut, proposes an $8 per hour wage here.

For more information on how a job guarantee could be implemented, see  here and here.



Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>