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Guaranteed Federal Jobs
In recent years, we have seen a now highly visible political figure make the proposal of a “federally guaranteed jobs program”. Most people do not understand the play on words being used here, because it is a play on words. Let me explain.
I will use the comparison of federal student loans. When people refer to the federal student loan program, many are under the impression that those loans are being issued directly by the federal government to the student. This is erroneous. The actual term for this program is “federally guaranteed student loans”. The fact is, the loans are not issued by the government. The loans are issued by corporate banking systems. The government acts as a cosigner and administrator for the loans. If the student defaults on a loan, the federal government pays the bank. Thus, the bank takes absolutely no risk in issuing the loan. That’s a more complex subject and this is the only part applicable to the subject at hand.
With the jobs program which was proposed, the same deception applies. With this suggested program, the jobs would not be federal jobs. The way it would work would be that if an employer agrees to hire workers, the federal government would pay the wages of the workers. The effect of this would be a welfare program for the employers. All they have…
