Universal assurances in the public interest: evaluating the economic viability of basic income and job guarantees
by Pavlina R. Tcherneva
International Journal of Environment, Workplace and Employment (IJEWE), Vol. 2, No. 1, 2006

Abstract: This article evaluates the strategies of guaranteeing unconditional basic income against those of guaranteeing employment. It is argued that, moral justifications notwithstanding, an open-ended commitment to either policy requires a clear grasp of its macroeconomic effects and institutional aspects. The tax-driven approach to money (also known as 'modern money') reveals that, while government funding for either proposal is not 'operationally' constrained, it produces disparate economic outcomes, depending on the program design of the universal guarantee. A modern money critique of the basic income proposal demonstrates that, in a monetary production economy, the unconditional supply of the monetary unit is inherently inflationary. By contrast, job guarantees can provide an important safety net by simultaneously stabilising prices. Additionally, job guarantees offer an institutional vehicle for achieving other social goals that are important to all advocates of universal assurances. The paper concludes that, to provide for all members of society, a joint policy option is necessary and outlines the broad contours of such a policy.

Online publication date: Wed, 22-Mar-2006

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Environment, Workplace and Employment (IJEWE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com