Introduction:
While in previous segments of the Job Insurance series, I’ve been understandably focused on using job programs to attack our currently-nigh-double-digits level of unemployment – but the whole idea of establishing a job program as social insurance is to envision a system that works both in recessions and in “good times.” At base, job insurance ultimately is a plan for full employment, that least remembered and most-tantalizing dream of American progressivism.
Historically, one of the most intellectually-daunting objections to full employment is the fear that it would create unstoppable inflation. But contrary to arguments that proponents of Keynesianism and full employment policies have no way to deal with inflation, there are and have been progressive proposals that allow for the holy grail of economic policy: full employment without inflation.