The more I think about what government can do to create jobs the more I think that there is “almost” nothing they can do…Businesses have created so many efficiencies in their manufacturing and processes that there will never be the need for the workers ever again…This is the case in every industry…
For example, car assembly…I tried to find some very old data, 40, 50, 60 years, but I came up empty…But in the last 10 years, labour hours per car has decreased almost 20%…And cars built today last longer…You can only use so many cars, so those jobs that have been eliminated will never be replaced…
So the only idea I have is 3 or 4 day work week…Now many folks will say that they can not support their families on that kind of income…But if you look back in time you will see that years ago single earner families could buy houses and go on vacation…But they were not satisfied living within their means so they became 2 earner families and bought bigger house and took more exotic vacations…That is what drove up the price of houses…If income levels go down, house prices will adjust to what the market can withstand…
Now getting back to the “almost” in my 1st paragraph…The one thing government can do is share the work they have…Federal, state, crown corporations (USPS, Amtrak), etc., etc. all need to cut their workers hours 20% and hire more people…And if you look at tax rates, the cut in pay would not be 20% because I think it would move folks to a lower tax rate…
But if those working did not have to support so many not working, eventually governments would not need so much taxes to support these programs…And some day once you pay off the debt burden maybe tax rates can go down…
This may seem radical, but what is happening now is not working…
Dave
