No link - Inflation can be curbed without increasing unemployment and the FJG would decline from the elimination of unnecessary welfare programs & production

How exactly, though, does a jobs guarantee combat the issues Americans face in the wake of Covid-19? Common of such a program include its price tag, a reduction in free-market competition, increased inflation, and the logistical challenges for administration and training. However, the very criticisms a jobs guarantee receives largely reflect the current realities such a program would combat. Worries of inflation due to full employment can be assuaged as the Fed can then manage inflation without increasing unemployment. Furthermore, take the predicted price tag of the program. At face value, the program could 2.3 percent of GDP – about $450 billion to employ and provide benefits to reach full employment in 2018. However, the reduction in demand for unemployment payments and related welfare programs mitigates this high net cost, as new workers rise above the poverty line. A study conducted by the predicts the actual cost could be as low as 1 percent of GDP. Not only that, but every dollar spent on government workers is a dollar infused into the economy to multiply and is exchanged for the product of the workers’ labor. A jobs guarantee does not work like most social programs in that the economic benefit is based on hand-out spending; the very nature of the program ensures increased production for otherwise idle workers experiencing financial stagnation or hemorrhage. Furthermore, contrary to the beliefs of some critics, a government-guaranteed job can actually provide increased competition to the labor market. By providing employment at a minimum wage of $15, the government can effectively set a for the labor-wage market, transferring power to workers and pressuring businesses to provide greater wages, benefits, and working conditions to attract employees. A labor-supply surplus is attenuated in that the demand for labor becomes nearly completely elastic – if there are not enough jobs, the government will then create more. Unemployment without a jobs guarantee is an issue less because there is not work to be done and moreso because the work is not profitable. When providing additional jobs is not profitable as it relates to product demand, fewer jobs are offered. This does not mean there is not work to be done. Many projects, such as re-outfitting buildings to be more environmentally friendly or rebuilding bridges and public transportation, are yet to be done. When the government – the agency of the people – becomes an employer, the scope of productive motivation expands to social benefit. By engaging workers in public works projects, the American economy unlocks a collective demand that bolsters the economy further by the multiplier effect.