Reducing High Unemployment?

Posted: July 10, 2011 in Current Events, Politics
Tags: , , , , ,

Any ideas?  I’m sure I don’t have the solution.  Pretty sure those in charge don’t either though.  The funny thing is it’s not all the economy that is screwed up.  Companies are profitable.  They are sitting on wads of cash.  Yet unemployment remains at a frustratingly high 9.3% while employers just added a paltry 18,000 jobs in June.  What gives?

Really I find that I have no answers.  I just have questions.

  • Not that it’s not important, but can this raising the debt ceiling thing really fix anything about the economy?  It seems to me that if you don’t raise it, it can really screw things up.  But I’m pretty sure raising it just means we keep the status quo.  I could be wrong though.
  • How does the government “living within its means” give business confidence to grow and create jobs?
  • If the goal is to reduce national debt, what sense does it make to make any tax increase revenue neutral by creating tax decreases elsewhere?  This was the Republican leadership’s idea of compromise on the tax issue (which now appears they are backing away from, because apparently there are enough Republicans stating they just flat won’t vote for a tax increase on anyone regardless of the circumstances.)
  • Isn’t the problem right now that people just aren’t buying stuff?  If so, all the tax breaks for corporations will do no good.  It doesn’t make sense to hire workers to make stuff that’s just going to sit on a shelf, it doesn’t matter what the tax rate is.  And corporations are only obligated to stockholders to maximize profits.  If that means using tax breaks to pad the bottom line, that’s what they will do.
  • If the problem is that people aren’t spending money, is this a good time for the government to also spend less money?  Or in the short-term, should they step in and spend more?  It would seem if nothing else, less government spending means less government jobs.  Wouldn’t this be a great time to spend even more money upgrading the country’s infrastructure (and in the process provide jobs not being provided by the private sector)?
  • If we are struggling so bad with national debt, why isn’t ending the wars on the table even for strictly economic reasons?
  • Does balancing the budget and reducing national debt create jobs and get the economy going?  Or does creating jobs and getting the economy going help balance the budget and reduce national debt?

I will say that it’s a whole lot easier to criticize than it is to actually come up with solutions.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s