Friday, June 7, 2013

Current Economics

The economy is in the dumps.  That much is certain.  The question is what can be done, and is anyone out there willing to do it?

First, we need some form of universal health care in this country.  Employer-based insurance has become a disaster; due to insurance cost on the private market, insurance is no longer a benefit, but is a necessity for an employer to provide for its workstaff.  Small firms cannot afford a large group plan (which is cheaper) and so are at a major disadvantage.  Workers as well - one cannot threaten to quit one's job if the pay, conditions, etc are not good enough for fear of losing health insurance.  This lowers bargaining power for employees, and bargaining power is something that is necessary for the labor market to work properly.

"Workshare" would also be an upgrade.  Reduce the regular work week to 30 hours and hire more employees to cover the difference.  This is in fact what should be happening as we become more efficient - everyone works less hard and spends more time on other activities.  Automation is good for everyone - we should embrace it and understand its positive consequences.

Also, cut bloated management salaries and use the money to hire younger workers.  Youth unemployment is a major problem because younger people are not gaining necessary experience - work, life, etc - and in 10-15 years this will mean nobody qualified to fill management positions that open up as people retire.  Also the fact that younger people cannot make enough money to save, afford housing, afford starting families, will lead to prolonged economic (and emotional) depression. 

More ideas in my head, too little time and space to write...


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