Coronavirus response: Government secondment proposal

There is a lot of discussion about how to respond to the economic issues generated by the Covid-19 outbreak.

Governments have affirmed that they will make money available

In my previous blog I argued that a targeted job guarantee scheme would be an untargeted UBI.

Helping firms or helping the unemployed? 

A lot of firms, particularly those whose customers sit in close proximity, will be under pressure to survive an extensive period of social distancing and/or lockdown.

We will need these firms when things go back to 'normal' in the medium term. If they go bust this creates huge economic uncertainty. The people who lose their jobs will have short and long-term problems to add to their existing concerns.

Some think that bailing them out is just going to transfer money to reckless business owners and shareholders who took profits out for their own benefit but didn't plan for a rainy day. Isn't capitalism about letting the weak go to the wall?

Given the social and economic disruption we should probably help businesses, though not write them blank cheques.

Government Secondment

Building on my flexible job guarantee proposal I think government should also offer to 'second' staff from struggling firms in affected industries.

Government should pay the companies up front to take control of their temporarily unnecessary but still costly workers.

What could the seconded workers do?

There are loads of things!

• Stay home! Those with health conditions can be paid to isolate.
  Others can be paid to stay at home, perhaps being assigned a 'reserve' occupation and being taught skills in this occupation remotely 
• These reserve and part-time occupations (with full-time pay) can be: Cleaners of public spaces, hospital support staff, supermarket staff, warehousing, farming, logistics, take-away deliveries. 
• They can no only cover and assist government staff but also be provided at no cost to private employers which have a crucial role but which have lost many staff to sickness and precautionary self-isolation. Essentially, this means backfilling jobs in key industries (healthcare, food delivery) where staff there are sick or self-isolating.
• Look after children off school. Those with children could be paid to stay home with them. Given advice about what to do. Teaching children is hard. 

If the secondees show any symptoms they should be told to stay home on full pay.

This would give employers a break in proportion to the impact on their business. It will cover one of their main (almost certainly their main) ongoing cost.

However, it doesn't provide employers with a blank cheque or prop up failing or irresponsibly run businesses.