Employer of Last Resort: A Policy to Ensure Full Employment

The United States government is dedicated to ensure truly full employment and price stability. However, current policies to increase employment via pump-priming have been unsuccessful, and further analysis shows that free market capitalism will not achieve full employment on its own. In this paper, I explore the cost of unemployment and argue for solution through an Employer of Last Resort program (ELR), which seeks to have the government directly employ all people ready, willing, and able to work. I also look at case studies of ELR programs implemented throughout history.

The United States government is dedicated to ensure truly full employment and price stability. However, current policies to increase employment via pump-priming have been unsu...

More