The plan shoots up inflation---creates a wage-price spiral
Bhandari ’19 [Ryan Bhandari, Former Senior Policy Advisor, Economic Program, 3-25-2019, "Third Way," Third Way, https://www.thirdway.org/memo/what-is-the-federal-jobs-guarantee-and-what-are-people-saying-about-it, St. Mark’s School of Texas, Ashrit Manduva ‘24]
#4: Inflation would rise. A sudden increase in the cost of labor for businesses will lead to inflation throughout the economy because of higher business costs that will need to be passed on to consumers. In addition, when only those at the bottom of the income distribution get a defacto raise to $15, there are upstream consequences. Workers who were making $15 an hour may demand $20 an hour now. Workers making $20 an hour might want $25 an hour and so on. This may seem like a benefit, but “this is a story of serious wage-price spiral, unless we introduce other measures,” warns progressive economist Dean Baker.5 We have been very fortunate that inflation has been well under control for the last few decades. A federal jobs guarantee could change that pretty quickly.