Any system that depends upon a percentage of its population being involentarilly unemployed to stifle wage demands will also foster divisive blaming of "others" for the results. The ruling class, and the bankers that serve it, push this regressive policy on us as "inflation control", but wages are always the last thing to rise under inflationary pressure. It is about capital's continued control of the economy and the suppression of the working class.

We can fix this with a permanent zero interest rate on Fed reserves and Treasury bonds coupled with a federally funded job guarantee to anyone who wants one at a livable wage and dignified benefits. Such a program defines a bottom for private sector wages and expands the definition of "work" to include many activities that benefit society but don't offer a path to profitability. It would also inject newly created money where and when it is needed in the private sector without necessitating partisan political decisions as an automatic stabilizer.