Following the 2008 economic recession, the U.S. government invested trillions of dollars into the financial industry and investment banking community in an attempt to reduce the negative effects of the market crash. However, this recovery was ultimately a jobless one and led to negligible employment opportunities for the millions of un- and underemployed workers in America.
The Federal Job Guarantee (FJG), proposed in this paper, takes the “too big to fail” rationale that was previously applied to the financial sector and extends it to the most financially vulnerable members of society. Through the provision of a quality job opportunity for all who want one, the FJG will help end the cycle of long-term poverty in the country, in addition to providing a mechanism that will smooth severe economic downturns, develop a skilled labor force, establish a wage floor, and foster a more productive business environment.
Written in July 2020 amidst the COVID-19 pandemic, this paper highlights the value of the safety net that a Federal Job Guarantee would provide.