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LOUISA VIRGINIA
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Home| About Us| Background | Related Links | Issues | Events | |
LOUISA VIRGINIA
The Problem:
America suffers from almost 10 % unemployment, which is probably closer to 15 %. That amounts to about 30 million folks without a job. In addition, many more millions are currently under-employed because they are working part time or at jobs paying far less than usual because of the tight job market. A fully recovered economy will not, in and of itself, improve these statistics significantly because other factors have contributed to them such as much cheaper labor available globally and increased worker productivity brought on by our advanced technology.
Background:
Over the past 10 years we have lost over 10 million jobs after gaining over 20 million over the previous decade. These losses were primarily attributable to our losing jobs over seas. Many of our good paying manufacturing jobs could be accomplished in developing countries at much lower wages. The other major factor was the labor savings realized by advanced technology. While technology advancements have contributed to increased worker productivity throughout history, their affects have not impacted job growth to the extent they have in the past decade. An example of this was a recent statement by the CEO of the manufacturing arm of GE in an interview. He said that before the recent economic turn down, his division employed over 30,000 workers but now, because of the recession, they were down to about 16,000. He predicted that after full economic recovery, GE would be producing more products than before the down turn but would be doing it with less than 20,000 workers. This lower work force is the result of worker production efficiencies.
As the global work force continues its rapid expansion and technology continues to improve our worker productivity we have reached a point of diminishing returns on the number of jobs available.
The author was raised primarily during the post WW-II era. The economy was booming, the “Industrial Revolution” was in full force and good jobs were plentiful. The standard of living and quality of life for most Americans was getting better and better. These are “the good old days” that everyone yearns for. In the early 60’s middle class Americans were not looking for a job. They were looking for higher pay for a reduced workweek. Behind the scenes however, more sinister forces were in play. Eisenhower had warned us about the “Military/Industrial Complex” gaining strength in America. We ignored that warning and as a result we today have more “Military Might” than the rest of the world combined. Much of this might consists of over priced weaponry totally impractical when we are fighting terrorists living in remote caves in rogue nations. In the mean while, other major special interests learned how to play the game. Today we have a Pharmaceutical/Industrial Complex, a Medical Care/Industrial Complex, a Fossil Fuel/Industrial Complex, an Agricultural Business/Industrial Complex, a Homeland Security/Industrial Complex, etc etc. These are called “Special Interests” but their primary objectives are to influence government policy for their advantage. We have the best government that money can buy.
The Solution:
To create jobs in the immediate future, will require massive government outlays on programs that are needed here and now such as infrastructure upgrades, home energy efficiency upgrades and educational facility upgrades. This funding should not come from increasing our national debt but rather from savings and/or added taxes and fees.
Other things we can be doing to increase the number of jobs are things like lowering mandatory retirement age limits and reducing the workweek. A plan should be developed to lower workweek hours from the current 40 hours per week to a goal of 30 hours per week within in 10 years. Then it should be lowered to 20 hours per week within 20 years. To accomplish this, policies must be enacted that require employers pay workers the same pay per week even as the hours worked per week are lowered. To those that decry this government control over our lives, they should learn that wage and price controls were standard fare during WW-II. Everyone went along with it because they felt it was needed for “the war effort.” Americans must learn that today we face many economic challenges even more severe than those faced during WW-II. We are "up against it" and we can not deal with it effective with out some shared sacrifices. Continuation of policies to provide more services and entitlements without tax increases and shared responsibilities is unsustainable. Only through drastic actions like these suggestions we can effectively confront these challenges.
For Example:
To receive unemployment benefits the following rules would apply:
Unemployed for 2 months - No Change
Unemployed for 2 to 4 months - Must provide 20 hours community service per week
Unemployed over 4 months - Must provide 30 hours community service per week
Note: Similar rules must be implemented for Welfare benefits.