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2 Rutgers J. L. & Urb. Pol'y 125 (2005)
Common Goals - Different Solutions: Can Basic Income and Job Guaranteed Deliver Their Own Problems

handle is hein.journals/rutjulp2 and id is 125 raw text is: 

Rutgers Journal of Law & Urban Policy


                      Pavlina R. Teherneva
                        L. Randall Wray'


      Proponents of income and job guarantee schemes agree on two
things. The first is that both the market economy and the modern welfare
state have failed many members of society by increasing the
precariousness of the labor market, reducing safety nets, and leaving many
without the basic resources for a descent living. Poverty, income
inequality and unemployment are pervasive features of capitalism and
modern welfare often takes the form of punitive measures aiming to
discipline the undeserving poor or the unemployed. The second is that
to begin addressing these problems, public policy needs to provide some
form of universal guarantees to all citizens. It is the nature of these
guarantees that represents the sharp division in policy recommendations.
      Income guarantee supporters champion the provision of an
adequate standard of living by affording sufficient resources to all member
of society. They argue that this objective can be achieved by guaranteeing a
minimum income to all (a basic income guarantee, or BIG hereafter). Job
creation proponents want to guarantee access to a job that could provide a
minimum income to the economically active population (and their
dependents). They believe that adequate resources can be provided by
guaranteeing a job to all, usually through programs as the Employer of
Last Resort (ELR). The key distinction between the two is that basic
income advocates want to decouple the income-work relationship
observed in modern economies on the basis that economic justice and
freedom require that resources are provided to individuals without the
compulsion to work. Job guarantee supporters, on the other hand, want to

1 The authors are, respectively, Associate Director for Economic Analysis and Director of
Research at the Center for Full Employment and Price Stability, University of Missouri-
Kansas City.


Vol. 2 * Fall 2005 * No.1

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