Paul Krugman is getting a bit concerned about the long-term unemployment problem in the U.S.:
The key question is whether workers who have been unemployed for a long time eventually come to be seen as unemployable, tainted goods that nobody will buy. This could happen because their work skills atrophy, but a more likely reason is that potential employers assume that something must be wrong with people who can’t find a job, even if the real reason is simply the terrible economy. And there is, unfortunately, growing evidence that the tainting of the long-term unemployed is happening as we speak.
What can be done?
Well, the first thing is for policy makers to stop listening to Krugman and his ilk. They always and everywhere want to perpetuate the situation with more government “solutions”.
Here are some sound steps that can be taken to get people off the couch and into the marketplace, where they can serve their fellow man:
- End The Fed: And end must be put to the engine that creates unemployment en masse via its boom/bust cycles. The unemployed are then kicked while they’re down by the sneaky theft of their
- Abolish The Minimum Wage: Government can create as much unemployment as it wants simply by raising the minimum wage. The minimum wage outlaws jobs. If you’re low-skilled, poor, or a teenager (i.e., the target of Krugman’s generosity) you’re forced into unemployment. The government has prohibited you from making a contract with a potential employer that may entail a wage under the government’s arbitrary minimum. Let private individuals freely contract and unemployment will shrink.
- Abolish Unemployment Benefits: Government can create as much unemployment as it wants simply by raising unemployment “benefits” and the amount of time for which you can receive them. Paying people not to work will do just that. If that artificial “safety net” wasn’t forcefully provided by government, you’d see a lot more hustle. A lot more hustle.
- Abolish Obamacare: Companies are already firing people to adhere to this monstrosity of a law.
- Abolish Government Licensing: In the U.S., you need some type of license to do just about anything. Entrenched and established companies help to put these into place as well. It stifles new entrants into the marketplace. These artificial barriers need to be removed ASAP.
- The Government Spending Problem: Every time the government “invests” (i.e. tells A to dig a hole, and B to fill it in) resources are removed from the productive class of entrepreneurs. It puts a squeeze on the real problem solvers in our society. Resources are diverted from pleasing customers to pleasing bureaucrats and their crazy visions that they want to force on us.
Krugman wants to perpetuate all of the above. And as the problems continue to grow, his diagnosis always involves ratcheting up the poisonous medicine.
Krugman thinks that the U.S. has special powers and can avoid the fate of every failed Welfare & Warfare State that has preceded us:
America isn’t and can’t be Greece, because countries that borrow in their own currencies operate under very different rules from those that rely on someone else’s money.
It would be a shame for Americans to embrace and believe this nonsense.
Economic Laws are universal.
The laws of supply and demand work exactly the same way as they did for the Romans, the British, and modern day Greece and U.S. In fact, Greece is in the fortunate position that they can’t hide the effects of nefarious policies as long as the U.S. can. They can come clean and fix their problems sooner.
The U.S. is still running on Keynesian fumes, and is in the unfortunate position of having to wait, of having to grind it out for much longer; until reality and good sense finally become unavoidable.