Neil Wilson britainiarra beste askorekin batera (Warren Mosler, Randall Wray, Bill Mitchell, Pavlina Tcherneva, Stephanie Kelton, …) lan bermeaz ere aritu da.
(i) N. Wilson-en The Job Guarantee — More Money, Less Tax1
What is a Job Guarantee?
A Job Guarantee is a very simple concept. It is the offer of a job, to anybody that wants it, at the living wage, paid by the government, working for the public good.
And how would that work?
If you are short of work you would go to the Job Centre and ask for a job. The Job Centre would then match you with voluntary, community and public services who have work on offer, and that are offering the sort of work you want to do. Job Centres become places that provide ‘Jobs for the People’ — a genuine Labour Exchange.
What would I get paid?
You would be paid the current living wage. For example, if the living wage was set at £10 per hour and you worked 37.5 hours a week you would get a gross wage of £375 per week. That’s five times the current rate of Job Seekers Allowance of £73.10 per week. Or six and a half times the £57.90 per week you get if you are under 25.
What type of job would it be?
It’s really down to what you want. If you want a full time job, then you would get a 37.5 hour a week, 9 to 5:30 Mon-Fri job with the usual four weeks paid holiday plus bank holidays. Full maternity cover and sick pay. The sort of job you would expect in a civilised society.
If you are working part-time elsewhere, then you can ask for a top up to full time from the Job Guarantee. You’ll never be short of work, or a living wage.
If you want to work outside, you can have an outside job. If you want to work inside, you can work inside. The choice is yours.
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So how will the government pay for it
The same way it pays for anything — by spending the money. A government of a country like the UK, Japan or USA that uses its own currency can never run out of money, something even intellectual giants like Donald Trump understand.
Once you learn the secrets of the government’s credit card — secrets the establishment want to hide — you quickly realise the government can buy anything unused that is priced in its own currency. The unemployed are unused, and will work for money if you ask them nicely.
So the government can, and should, offer a job and a wage.
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The Job Guarantee wage is only paid to people working in Job Guarantee jobs. The more people on the scheme the more government spending. When they move to private sector jobs that payment stops — which automatically reduces government spending.
It is an ‘auto-stabiliser’. Spending goes up when the economy is down, and spending goes down when the economy is up.
So because it is carefully targeted at only the people that need it, and it automatically self-adjusts based upon need, there is no requirement to correct any over spend via taxation on the other side.
The result of that is straightforward. The current low tax rates can stay.
Why is the private sector excluded?
Simple really. Why should the state subsidise private profit? If the state pays, then that is the same as all the citizens paying. Since the citizens paid, they should receive the output produced by Job Guarantee employees — tidy parks and gardens, more charitable services for older and younger people, free art and entertainment.
But perhaps more importantly the job of the private sector is actually to put everybody in the private sector out of work — by automating away jobs and replacing them with machines and advanced methods. The Job Guarantee helps that happen by making labour relatively scarce and forcing the private sector to compete to get it.
Strapping people to the back of a primitive planting machine only happens if labour is cheap and plentiful. Make it scarce and suddenly that new automated robotic planting machine looks like it is worth the investment.
Labour competition forces more investment by business, better training and better methods, and that improves the productivity of the country. And that is how our standard of living improves. Easy access to labour slows down productivity improvement, and reduces business investment, and we’ve seen too much of that in recent years.
Why is the public sector excluded?
It is and it isn’t. The public sector can use as much of the Job Guarantee labour as it wants to — at the living wage. But because the people on the Job Guarantee may be moving in and out of the programme rapidly (as they get other jobs elsewhere in the economy with their newly acquired skills and experience), then Job Guarantee labour may not be the best for public sector provision that absolutely has to get done.
Once the Job Guarantee is in place, then everybody has a job. And that means that required public sector services come about by moving people to the public sector from existing jobs. The tool you use to free up resources from the economy is taxation. So you are back to traditional tax and spend and the political debate around that process.
Paying people higher salaries in the public sector is a transfer of resources away from other people. But if you can show that they put more back, then people will happily pay the taxation from their higher incomes. You’ll get little argument with doctors, nurses and teachers for example. It’s very clear how much they put back.
Overall the required public services will be matched with taxation, whereas the ‘nice to have’ public services will be done by Job Guarantee people.
(ii) N. Wilson eta Jeremy Corbin
“We … guarantee a decent job for all” Corbyn has committed Labour to a Job Guarantee. Let’s show him how to build one. #10pledges #MMT
2016 abu. 4
Andrew John Miles @ajmiles4 abu. 4
@neilwilson Yes! If I could re-tweet 1000X, I would! Can we clone @ptcherneva?
(iii) N. Wilson-en The UK Job Guarantee — how it gets paid3
Why the UK tax and benefits infrastructure is ready to implement a full Job Guarantee for all.
How PAYE, RTI and Universal Credit work
The UK tax authorities runs a wage calculation and tax deduction system (Pay as you Earn — PAYE) that requires every employer to run a PAYE scheme. Every pay period (usually weekly or monthly) each employer, reports employee wages to the tax authorities, calculates the Income Tax and National Insurance deductions, and pays over the deductions directly to HMRC — the UK’s tax collection authority.
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This timesheet information is linked through to the Department of Work and Pension’s (DWP) Universal Credit system — the new system of paying social security payments to individuals — so that the right amount of top up Universal Credit can be paid to those eligible.
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Every week or month an electronic message is sent by every employer to HMRC detailing who the employer is, how much an individual has been paid, what their tax deductions are, and an indication of how many hours they have worked in that period.
That information is relayed to the DWP for every individual eligible for Universal Credit, and the DWP makes a direct to bank account payment once a month that tops up the wages with the appropriate Universal Credit payment.
How the UK Job Guarantee Wage gets paid
Extending this scheme to support the Job Guarantee is straightforward. Instead of reporting hours bands to HMRC, Job Guarantee eligible employers would have the option of reporting the precise amount of hours worked, and setting the Taxable Pay field to zero.
That message is relayed across to DWP and the Universal Credit system makes a wage payment to the individual according to the reported hours at the living wage.
So if the living wage is £10 per hour and the individual works a full 37.5 hour week, then they would be paid a wage by the Universal credit system of £375 per week, or £1625 per month. This is considerably more than the current Universal Credit stipend which is as low as £58 per week or £250 per month and represents a step change in the income of the poorest people in the land.
(iv) Pavlina Tcherneva:
P. Tcherneva-k dioenez,
Pavlina R Tcherneva @ptcherneva4
Great to hear that @jeremycorbyn pledges a job guarantee. I explain what it is here: https://vimeo.com/83813741 #jobguarantee #decentworkforall
2016 abu. 4
