I have tried to live with them in my garden but whenever they build a nest in it I get stung. Yellow jackets are the most aggressive wasp I have ever experienced. If I see a nest in my garden I immediately try to exterminate. They also eat my second crop of raspberries a lot in the fall. Sorry I just think the cons outweigh the pros with yellow jackets.
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I totally get you. I don't let them build IN the garden. They have to be outside of it and in a place my kids won't mess with them. And you are CORRECT, later in the season when there are fewer worms and caterpillars to snack on, they go for the sweets. I'm picky with how I will co-exist with them...but they can be a beneficial bug.
I had one in my compost pile one year. What a nightmare!
They don't normally bother you unless you are within a certain distance to their nest so I don't actively try to kill them unless the nest is within that danger zone.