Addendum: I appreciate that MMT acknowledges that price distortions will happen when JG is introduced. But if it stays during a subsequent boom, these distortions will stay, and they will permanently alter the cost structure for private businesses. No need for the JG to chase after private sector wages, because in the first instance, it may already have killed all lowest skilled jobs in the private sector (capitalism makes businesses very tight on cost structure) Perhaps all businesses will just end up outsourcing all lowest skilled jobs to the government. I don't advocate for this to happen, where all businesses could start expecting government to pay for all their minimum wage workers. Wouldn't this be some sort of permanent subsidy to capitalists, a sort of crony assistance to the biggest employers of minimum wage jobs? Ex. Under a JG regime, Walmart could start justifying that they are a JG supporting company that creates a lot of jobs for the JG, so the government better start paying their line workers. I'm sure MMT doesn't intend for this to happen, but capitalism has a way of going around these new distortions, maybe for the worse.
PPS. Re: 100% employment, I agree it's a noble goal. But isn’t it a better goal to just get enough people employed to jumpstart aggregate demand and get the economy working again? Going for 100% at all times puts the economy at risk of becoming dependent on the JG for good. Otherwise, it stops being a countercyclical program, and becomes another alternative economy unto itself, since ensuring everybody has a JG job offer ensures that nobody takes a private sector job unless it’s for a premium above the JG wage. This prices out many small businesses for labour, and probably most startups. And it completely shields workers from making the difficult decisions of making the necessary adjustments and learning new skills, so that they can rejoin the regular economy, wherever its growth is going to be.