Forum Thread

William K. Black on Ryan, Romney, the 47%, and the MMT Job Guarantee: Put Up or Shut Up!

Reply to ThreadDisplaying 1 Posts
  • Are you sure you want to delete this post?
    William K. Black is an American hero. The last of a dying breed of public servants. This is a man who selflessly made himself unemployable due to his willingness to call out S&L fraud and take action when he had the power to stop a much larger crisis as a regulator. He exposed the "Keating 5" and fought overwhelming opposition from both parties to "re-regulate" an industry gone mad. His actions resulted in the successful prosecution of hundreds of elite frauds.

    His writings on the Reagan-Bush I-Clinton-Bush II-Obama ongoing financial crisis have been a superior source of information compared to mainstream reporting.


    "There is a reason that Romney did not discuss jobs in his infamous rant against the 47%. If the 47% who are capable of working are not working because they are unemployed (which means they are looking unsuccessfully for a job) or are only marginally employed at such a low wage that they qualified for governmental assistance, then they (1) do bear the cost of many taxes and (2) they are seeking to take personal responsibility. Romney implicitly claimed that the 47% were all shiftless types receiving a handout while refusing to work or try to find a job. Romney describes the problem as having nothing to do with the Great Recession and high unemployment. He claims that the problem is that the freeloaders are so shiftless that Romney cannot “convince them they should take personal responsibility and care for their lives.” Creating more jobs is useless because the problem is the ineradicably immoral defects of the 47%."

    Let's test Romney's theory with the MMT JG.

    Anyone able and willing to work for a Treasury funded job at a non-disruptive fixed minimum rate of pay (say $8/hr) would be afforded the opportunity and put to work in public works.

    If nobody shows up, well, what's the harm? Republicans would prove correct about the character of the unemployed and nothing is spent.

    But what if they do show up?

    What if they do want to 'take responsibility' and 'earn their keep' but there are just not enough public and private sector jobs to go around (a 9 bones/10 dogs problem) ?

    Bad News for Team Evil.

    It is assumed that unemployment is necessary for price stability. But are the unemployed, especially the long-term unemployed, really a threat to taking anyone's job, thereby 'disciplining' wage demands? How can this be true when we know the long-term unemployed are statistically the last to be rehired, if at all?

    If anything, wage demands are disciplined by the large number of those currently employed looking for new jobs or additional employment and the lack of aggregate spending that's led to reduced output and number of new jobs available.

    Damaging human capital is the last thing you want to do to a competitive wage economy.
    Employers should want more people to be in a position to compete for better higher paying jobs. Otherwise, employers are going to have to pay a lot more for skilled labor.
    And even with unemployment where it is at, we could very well still have a labor shortage at some point, because there are not enough workers in a position to compete for those higher paying jobs.

    Anyways, no question there are issues to be resolved with a Job Guarantee. Just like there are issues and details with any idea that have to be accounted for. But there's nothing unfathomable about government creating jobs for people who can't find work in a capitalistic wage economy. There's no threat to negative liberties. This would be a statutory positive liberty created for the "general welfare" that supports the public purpose of government, which is to provide for a negative realm of liberty we can make use of

    Government does not exist solely not to bother us within a certain measure. Its existence is not justified by its existence. It exists and finds legitimacy in protecting individual rights and coordinating a common public sector in support of the expansion and protection of the realm of negative liberty that we individually have the opportunity to make use of.

    The monetary system exists to serve the public purpose of coordinating private actions with a common variable. The US dollar is a product of law and the law reflects our ethics as a society. It should not be use to tyrannically impoverish people out of misguided fears.

    Progressives have got to fight back as the Founders of this nation intended.

    An unlawful Greed originating out of the dark side of the American Dream has grown up to gobble the world like a snake swallowing its own tail. Austerity is the strangulation of an entire generation. Refuse to cooperate! FIGHT BACK!

    Where is the Democratic wing of the Democratic Party?