Posts Tagged ‘Public Employment’

Can the U.S. guarantee every American a job?

June 1, 2018

Is it possible to guarantee a job at a good wage to everybody who wants one?  Senator Bernie Sanders is working on a proposal to do just that, and several other Democrats have endorsed the concept.

Nobody in this country has ever tried anything like this.

“Full employment” as usually understood means reducing unemployment to the lowest possible figure, now estimated at 1.5 percent.

President Franklin Roosevelt’s New Deal created millions of useful jobs, but fell far short of providing a job to every individual who wanted one.   He proposed a postwar economic bill of rights that included the right to a decent job, but it isn’t clear whether that was meant literally or as an aspiration.

At the present time, the most widely-discussed proposal for a job guarantee is the National Investment Employment Corps (NIEC) proposed by Mark Paul, William Darity Jr. and Darrick Hamilton, working with the Center for American Progress and the Center on Budget and Public Policy Priorities.

The NIEC would provide a job to any American 18 years old or older at a minimum annual wage of $24,600 for full-time workers ($11.83 an hour).  They would have a chance to advance within the program to $32,500.  Wages would rise with the rate of inflation or to keep pace with any increase in the national minimum wage.

Full-time workers would be given the same health insurance and other benefits as other federal employees, whose cost is estimated at $10,000 a year. There also would be an option for part-time work.

The Secretary of Labor would provide “employment grants” to state, county and local governments, as well as Indian nations, for NIEC workers to carry out community projects.  The Secretary also would work with federal agencies to identify kinds of needed work that aren’t being done.  Examples might be energy efficiency retrofitting, elder care, ecological restoration and preschool services.

Where local governments could not think up enough useful projects to provide full employment, the NIEC would step in and do the work itself.  On the other hand, it would not fund work that would displace already existing employees.  Investigators would check to prevent corruption or boondoggling.  That’s how it’s supposed to work.

Paul, Darity and Hamilton estimate NIEC would employ 10.7 million workers which, factoring in part-timers, would equal 9.7 million full-time job equivalents.

They estimate the annual cost of their program at $543 billion a year.  That would be offset, they say, by reduction in spending for food stamps, unemployment compensation, earned income tax credits and other federal programs to help the poor and unemployed, and by an increase in taxable income.

The Levy Economics Institute of Bard College has developed a less-detailed proposal, which is said to be the basis for Bernie Sanders’ proposal.  The main difference is that the Levy proposal is based on a wage of $15 an hour.

It sounds good.  What would be the problems?  I think thee are some serious ones.

(more…)

Public employment fails to keep up

October 14, 2014

EPIpublic-sector-jobs-gapEPIsnapshot-teacher-gap-10-08-2014

My e-mail pen pal Bill Harvey sent me links to articles with the charts shown above, both from the Economic Policy Institute, whcih the seriousness of the current attack on the public sector and the decline of public employment.

Public employment, unlike in previous economic recoveries, is still depressed, especially at the state and local level.  In and of itself, this creates a drag on the whole economy, just like job losses in any other category.

And after a certain point there aren’t enough public employees left to do their jobs adequately.   Teachers with too-large classes teach less effectively.  Firefighters with too-long shifts and too-small crews fight less effectively.  Nurses with too many patients may not be able to keep track of them as they should.  Public roads and public utilities aren’t maintained.

While there can be featherbedding in public employment, this is not the situation now.  Public services in many places are in dire straits.

(more…)