Question #29

If the Government introduced a permanent Job Guarantee (offer of minimum wage job to anyone who wanted it) then

• it would have no inevitable implications for future deficits or aggregate demand levels.
• it would mean that aggregate demand would always be higher than otherwise.
• it would lock itself into budget deficits forever.

Answer #209

Answer: it would have no inevitable implications for future deficits or aggregate demand levels.

Explanation

Please see Boondoggling and leaf-raking or post a question via the comments page.