The overall efficiency of such a credit system ought to be higher than contingent employment by the Army or by some other bureaucratic system. More important, however, than keeping the cash wage of a person to be rescued up, is preventing both the fear of inflation and the fact of inflation at bay. Most people think that the absence of fear of job loss will demoralize a workforce. This demoralization, they fear will be followed by lower output, higher union and non-union wage demands, and real inflation or worse. Certainly, if we allowed the higher wage, as an advance, per my view of the matter above, the fear of inflation would be even greater.
Every nation has the central banking and money minting monopoly.
But only nations whose money buys great military weapons, tall buildings and fast cars, can make that monopoly pay off. It may be true that Italian Lira denominated bonds were not going to be defaulted, and that over time sovereign nation bonds bought at deep discount are OK, but that is not the same as paying high wages to a fully employed workforce who then live at a decent standard. Dollar bonds seem safe. But the streets in our cities are not. Government needs a high tech industrial sector that can deter war, pollution and overpopulation and can produce the things that motivate study and work without regimentation.