Professor Bill Mitchell (University of Newcastle) explaining the idea of a Job Guarantee policy. In a Job guarantee program, the government offers a fixed nominal wage (like, say, $12/hour + benefits) to anybody who is ready, willing, and able to work. The price of labor would be fixed, while the quantity the government purchased would be allowed to "float," based on what's going on in the economy. In this way, it acts like a "buffer stock scheme," to stabilize the price of unskilled labor.
This brings involuntary unemployment down immediately and permanently to zero. By fixing the cost of unskilled labor, it would also impart greater price stability to the economy as a whole. Essentially it works the same way as a gold standard, except by fixing the price of unskilled labor instead of the price of gold.
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