Robert Reich explains....
So, once again, we are NOT talking about a "right" to work. What Reich is talking about is creating a federal program that would offer anyone who wants it a guaranteed federal job that pays a "living" wage, its primary formation (as noted in the OP), stemming from the New Deal.
There are, of course, many problems with this idea, setting aside the fact that Republicans would never vote for such a thing. Remember them?
Aside from the fact that these measures were necessary during recessions as a last resort/fall back--not a general, ongoing concern--here's a good
opinion piece on it from someone who
used to support it, but now raises important points:
The basic idea of having the federal government act as the country’s employer of last resort is a good one. Although the economy occasionally puts the entire labor force to work, regular recessions mean that there are usually lots of people who want to find jobs but can’t.
...
During the Great Depression, the New Deal had success with a raft of programs designed to give jobs to the unemployed -- the Works Progress Administration, the Civilian Conservation Corps and the Public Works Administration. Furthermore, there’s a good chance that a job guarantee would provide people with more dignity than programs that just give people cash. As long as the jobs weren’t obviously pure make-work, they could allow people to feel more valuable to society.
...
But there’s a very good chance that the politics of the modern day would turn a job guarantee into something very different from the New Deal -- and make it much less beneficial for the economy.
First, there’s the question of whether people could be fired from the new program. It’s easy to imagine good reasons to fire someone from a government job -- starting fights, for example, engaging in criminal activities or simply refusing to work. Even if a job guarantee allowed workers to be fired for egregious offenses, there would doubtless be intense public scrutiny of firing decisions, especially on social media. That would put immense pressure on the administrators of the federal jobs program to avoid firing even those who deserved to be fired.
The likely results would be a drop in productivity as some people realized they didn’t have to work to collect paychecks, increased resentment among those who felt morally obligated to put in a hard day’s labor, and disruption of the workplace due to toleration of disruptive or criminal behavior that would never be permitted at private companies.
Even more troubling, there’s the possibility that the guaranteed federal jobs could cannibalize the private sector and make the economy less productive. The New Deal jobs programs were undertaken at a time when the economy had a huge amount of unemployment, and there was little chance that workers with private sector jobs would jump ship. But in the absence of very high unemployment like that of the Great Depression, a job guarantee will compete with private companies.
And the job guarantee would often win that competition. Modern proposals would require that the federally guaranteed jobs be good jobs, with good pay and benefits. For example, here is the relevant text from the Green New Deal resolution recently introduced by Representative Alexandria Ocasio-Cortez:
guaranteeing a job with a family-sustaining wage, adequate family and medical leave, paid vacations, and retirement security to all people of the United States
This sounds better than many of today's low-wage jobs.
Competition from these government-sponsored jobs would have an initially healthy result. It would force private companies to raise wages and increase benefits in order to keep up with the government. But as private-sector jobs improved, activists’ notion of what constitutes a good job would increase, and they would call for steadily higher wages and benefits for government work. Eventually this would exceed private companies’ ability to pay, so the job guarantee would come to represent the benchmark in the labor market and make up an ever-larger slice of the economy.
This would reduce productivity, since government jobs would likely generate less real value than private-sector jobs. Economists have found evidence that the beneficiaries of short-term government jobs tend not to go on to find work in the private sector after the programs end, suggesting that guaranteed jobs would be low-productivity work. As activists forced government wages and benefits higher, the private sector would find itself deprived of cooks, janitors, housekeepers, cashiers and the other people who make a modern economy run.
What's the better alternative? Something I've been arguing for years:
So although a job guarantee could potentially be a good thing, politics seem likely to make it bad. A better idea is to use private-sector employment subsidies to encourage companies to hire more unemployed and underemployed workers -- an approach that the data suggests is much more effective in terms of building long-term worker skills. Additionally, a combination of wage subsidies, minimum wages and increased worker bargaining power could help private-sector workers capture a bigger share of the value they create.
Instead of replicating unnecessary DMVs all over America, use the same money to subsidize private sector special skills job training programs--or, better, imo, simply provide specific and targeted tax deduction incentives instead of just cutting tax rates for corporations--so that workers are actually given on the job (or in preparation to be on the job) skills training that can serve them the rest of their lives.
Think of all the coal miners that have no modern skill sets for any other job. They are all hard workers, willing and able to work, but because they have no other marketable skills, they're fucked. Instead of putting those people behind a desk stamping government forms all day long, encourage corporations through specific tax deductions/incentives to tap that hard work ethic in training/work placement programs that teaches them any number of new industry skills in green initiatives (solar industry/wind/natural gas/nuclear) etc. or in more labor-intensive jobs like construction (either in infrastructure, so, yes, government; or real estate, so private; it needn't be binary).
Here are snippets from an
in-depth meta study conducted by the National Bureau of Economic Research (initially published in 2015, so, you know, before the recent unpleasantness). First a look at the extent of the (meta)study:
As noted, we have a total of 857 different impact estimates for 526 different PPSs (program-type/participant subgroup combinations) extracted from 207 separate studies. To deal with potential correlations between the program estimates from a given study - -arising for example from idiosyncratic features of the evaluation methodology -- we calculate standard errors clustering by study.
Column 1 presents the characteristics of our overall sample, while columns 2-6 summarize the estimates from five country groups: the Germanic countries (Austria, Germany and Switzerland), which account for about one quarter of all studies; the Nordic countries (Denmark, Finland, Norway and Sweden), which account for another quarter of studies; the Anglo countries (Australia, Canada, New Zealand, U.K. and U.S.), which account for just over 10% of studies; and two non-mutually exclusive groups of lower/middle income countries -- "non-OECD" countries (10% of studies), and Latin American and Caribbean (LAC) countries (10% of studies). Appendix Figure 1 shows the numbers of estimates by country. The largest source countries are Germany (253 estimates), Denmark (115 estimates), Sweden (66 estimates), the U.S. (57 estimates) and France (42 estimates).
Analysis/Findings (emphasis mine):
In the long period of recovery after the Great Recession there is renewed interest in the potential use of active labor market policies (ALMPs) to help ease a wide range of labor market problems, including youth unemployment and persistent joblessness among displaced adults (e.g., Martin, 2014). Although training programs, employment subsidies, and similar policies have been in use for well over 50 years, credible evidence on their causal impacts has only become available in recent decades (see Lalonde 2003 for a brief history). Within a relatively short period of time the number of scientific evaluations has exploded, offering the potential to learn what types of programs work best, in what circumstances, and for whom.
In this paper we synthesize the recent ALMP evaluation literature, looking for systematic evidence on these issues. 1 We extend the sample used in our earlier analysis (Card, Kluve, Weber, 2010; hereafter CKW), doubling the number of studies (from 97 to 207) and increasing the number of separate program estimates from 343 to 857. Many of the latest ALMP studies measure impacts on the employment rate of participants, yielding over 350 estimates for this outcome that can be readily compared across studies.
…
[T]he time profile of average impacts in the post-program period varies with the type of ALMP. Job search assistance programs that emphasize "work first" tend to have similar impacts in the short and long run, whereas training and private sector employment programs have larger average effects in the medium and longer runs. Public sector employment subsidies tend to have small or even negative average impacts at all horizons.
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Job search assistance programs appear to be relatively more successful for disadvantaged participants, whereas training and private sector employment subsidies tend to have larger average effects for the long term unemployed.
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A third conclusion is that public sector employment programs appear to be relatively ineffective at all time horizons.
Their conclusion:
With regard to the impacts of different types of ALMPs, we find that the time profiles of "work first" style programs that offer job search assistance or incentives to enter work quickly differ from the profiles of "human capital" style training programs and public sector employment programs. Human capital programs have small (or in some cases even negative) short term impacts, coupled with larger impacts in the medium or longer run (2-3 years after completion of the program), whereas the impacts from work first programs are more stable. We also confirm that public sector employment programs have negligible, or even negative program impacts at all time horizons.
Iow, a combination of job search assistance programs and private sector training programs/incentives are evidently the best way to go about getting people "willing and able" into jobs/careers, whereas public sector employment like what Reich/AOC/Sanders are evidently advocating not so good (in fact, negative impacts "at all time horizons"; i.e., short term, mid-term, long term).