Why is the job guarantee a superior countercyclical stabilizer?

All public policies which aim to tackle economic insecurity behave countercyclically—expanding with need and shrinking when economic conditions improve. Jobs are invariably the casualty of economic recessions and crises like COVID or climate change. With the job guarantee in place, when companies lay off workers they can transition directly to the job guarantee.

Without the job guarantee, people curb their spending in recessions, creating a ripple effect that results in additional unemployment. The job guarantee interrupts this vicious cycle. When private employment shrinks and workers are laid off, they can transition into the job guarantee. As the economy begins to recover, workers can transition to other, better-paying employment opportunities.

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