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Under-employment

Under-employment is a major problem of the human species. In much of the world, people are idle who need meaningful work.

Please see a new social contract - a way to achieve Full Employment and control inflation.

No one who wants to work should ever go without a job. It is the duty of society to provide at least a minimum wage job for all.

Under-employment has three components:

• Not employed - desires employment
• Employed part time - desires full time employment
• Employment in non-essential efforts

Q. What is the cause of this problem?

A. Under-employment is caused by technology. People are no longer able to provide for themselves due to increased population, scarcity of natural resources and social organization enforced by the rule of law.

To address the problem of unemployment, we need to make the following changes:

• Eliminate all welfare payments over a brief time interval; say five years. The welfare experiment was a total failure.
• Establish a minimum wage and let the labor market establish the value of work based upon a person's abilities and skill set.
• Make the state an employer of last resort to ensure that anyone who wants a job receives one. These jobs will serve community needs and be paid from a national, progressive income tax. The wage rate will be one half of the established poverty level. Jobs of last resort will require a minimum of forty hours per week of attendance on the job.
• Adjust the number of hours in a work week inversely to the number of jobs of last resort provided by the state

There will always be the poor, by definition the bottom ten per cent of income earners; but, poverty can be eliminated by forcing the economic system to provide Full Employment.

This does not advocate forcing everyone to work. It recommends against paying people to not work.

Full employment means that anyone who wants work will find it in a short time frame - say one week.

We have the Virginia Employment Commission (VEC) here. Their job is to help people find work. If anyone not able to find a job on their own goes to the VEC they should get a job quickly. If none are available, then the person would be given a job doing non-essential work such as entering data into a computer data base for historical material not already available for online access or doing recycling of material not normally recycled or some other useful but non-essential activity.

Once we have addressed the problem of un-employment, we can focus on reducing employment in non-essential efforts. This will greatly improve human productivity.

About The economy

Fixing the economy

Unemployment

There are two problems with the Capitalistic economic system:

1. A permanent group of unemployed workers equal to about five percent of the working population and
2. The boom-bust business cycle which causes further unemployment.

It is in everyone's best interest to solve these problems.

As a guiding principle to help design a solution we recommend the following:

1. Tax that which you want to limit.
   • Therefore, tax income with a progressive income tax [lower incomes means less speculation]
   • Therefore, do not tax business
2. Subsidize that which you want to increase.
   • Therefore, subsidize low income [low wages means lower cost goods]
   • Therefore, subsidize savings [no tax until withdrawal]
3. The people who benefit from a service should pay for the service.
4. Hard work should be rewarded.
5. Society should not reward laziness.
6. Risks should be covered by insurance.

We therefore, recommend the following general solution to the problem of unemployment. Everyone should be covered by a national unemployment insurance program funded by the progressive income tax. Then anyone who wants a job should go to an employment agency which will help people locate work, And when there is no work available a non-essential but socially beneficial job will be made available in a short time period, say one week. That no one shall receive any payment for not working - eliminate welfare.

Bottom Line: When the free market is not providing sufficient jobs, the government must step in to provide work which does not compete with businesses which are profitable.

About A Crazy World thought

Q. Where are the jobs in the future?

Please see a new social contract - a way to achieve Full Employment and control inflation.

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