[ExI] Is unemployment the future?

Mirco Romanato painlord2k at libero.it
Tue Nov 3 17:28:09 UTC 2009

BillK ha scritto:
> On 11/3/09, Eugen Leitl wrote:
> <snip>

> Ah ha!  I see Eugen understands what is going on.
> The official unemployment figures are massaged to meaninglessness by
> the politicians. That's why I quoted the food stamps figures. So far
> as I can tell these figures are just straight totals and are not
> adjusted for public consumption.
> Even GDP stats nowadays are mostly useless. Recovery??? That's a joke
> - except for bankers' bonuses.
> Also, many people 'officially' employed are on short time and have
> very low take-home pay. Thus they become eligible for food stamps,
> which shoots upwards.
> It is not only computer tech that is the problem. Production has been
> outsourced to China and the Far East. India provides helpdesks and
> call-centres, cars come from Japan, etc. etc. The first world jobs are
> in government or the remaining services that are not yet transferred
> abroad.
> In some areas of the UK, half the population is employed by the
> national or local government or the national health service. They
> provide services to the other half who are on unemployment benefit or
> permanent disability benefit.
> Is this the wonderful future we anticipate?

You didn't, but it is not a surprise.


Permanent disability benefits are a way to buy votes.
Often they are given fraudulently.
Government jobs are a way to buy votes. Often they use near all the 
budget to pay for the employees and there is no money to let them do 
their intended jobs.

I bet that the areas where government jobs are larger are the areas 
where economic development lag or is negative.
More government jobs make harder to produce real jobs because the 
government jobs need to be funded by taxes paid by real jobs.
So, marginally employable people is put out of real jobs by high taxes 
and government step in for "help" them with doles or fake jobs that 
raise the tax burden for others and put other workers out of their jobs.

Lowering taxes is the best way to create jobs.
In the same way, pegging the currency to a commodity (like gold) would 
prevent money creation and the stealth stealing of value from people 
living from their wages and without hard assets like real estate.

This would force interest rates much higher than now, forcing people and 
government to spend less and reduce lending. But would prevent bubbles 
and malinvestment (allocation of resources in only apparently 
remunerative projects). It would kill many financial jobs in the same 
time, as these can exist only with near zero interests rates 
artificially low.

But I bet these solutions will not like you.

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