Unemployment

E-mail to Congress:

EIN News says, "Eurozone Unemployment Rate Continues Rising. August's seasonally adjusted rate rose to 9.6%, compared with 9.5% in the previous month, official figures show. The number of people without a job in the eurozone is now 15.2 million. Despite the fact that many eurozone economies are recovering from recession, economists expect unemployment rates to continue rising. (bbc.co.uk)".

The slight rise and fall of unemployment from month-to-month, in Europe, the US, or anywhere in the world, is not of particular significance. The major consideration is a philosophical/societal consideration of unemployment compared to employment at the present time and what the future holds. I agree with economists that expect unemployment rates to continue rising.

The reason for an expected future rise in unemployment is simple. Companies that produce goods and services are motivated to increase profits. One of the best ways to increase profits is to use technological improvements that effectively decrease the involvement of human operators. As companies continue to become more efficient, they will continue to reduce the number of man-hours required to produce a particular widget or service unit.

A natural force to combat such unemployment is opportunity for production of new goods and services, which will be bought by the general public. However the general public has only so much money to spend on such new goods and services, and in so doing may also have to give up other goods and services which they have been previously using. This establishes a kind of balance, but the general advantage goes to a slight decrease in unemployment through these new opportunities.

Another force to combat such unemployment is to give goods and services to the "less fortunate", whether they be local or far-reaching intercontinental. This is a socialistic concept with great advantage to recipients but disadvantage to the givers or grantors, especially if they are the general public of a government with such high altruistic aspirations. Obviously, this approach has its disadvantage in that there is no increase in goods and services. It is merely a redistribution of wealth.

Of these two possibilities, the opportunity for production of new goods and services has the most potential. However, with the major problem of tremendous unemployment, we need an equivalent tremendous production of new goods and services. This will require a redefinition of goods and services, more toward the approach that previously existed with the development of the international railroad system or production of steel. In both those cases, private industry was able to assemble the required assets to do the job. More recently, corporate philosophy has been much more timid, through governmental restrictions.

In essence, we need major projects to absorb the unemployed. In the absence of such projects, the unemployed make their own jobs, as we have seen in Los Angeles and Chicago gangs using a growth industry of drugs and prostitution. Some quick brainstorming brings to mind several possibilities, but each of these possibilities needs to be evaluated on whether its success results not only in reducing unemployment, but also making a positive contribution of improved living conditions and lifestyle for a large number of people. For example, construction of a pyramid, such as those previously built in Egypt, would consume massive amounts of labor to decrease unemployment, but would have no positive effect on improving living conditions and lifestyle.

Conversely, large areas of the country are periodically subjected to periods of drought and flood. We have previously had massive programs of flood control, such as Bonneville and the Tennessee Valley Authority (TVA), but there remains much more to be done. The Southwest from Oklahoma through Arizona has annual rainfall, which classifies it as an arid region. It has the potential of huge agricultural production, if it had sufficient irrigation. There are huge quantities of water available in the North Midwest, in the form of the Great Lakes. That water is continually replenished through substantial rainfall. The quantity of fresh water flowing from the Niagara River to the ocean is tremendous. A huge irrigation project to divert some of that water to the Southwest would employ great numbers of people. Not only in the construction but in subsequent agricultural production, processing, and transportation. The Southwest has the potential of becoming a second breadbasket of the world, right after the Midwestern states.

Consider also that had during the Great Depression, the Civilian Conservation Corps (CCC) employed many young men. This was a government operation at the time, because there was no private support available. However, the idea still has merit, with government cooperating where possible with private industry to engage in desirable construction projects. This might even include the irrigation program, as mentioned in the previous paragraph. When such young men are gainfully employed, they have little desire engage in gang warfare, drug operations, and programs to destroy the establishment.

Think about it. Pay particular attention to the need for grandiose projects. If the Romans had reason and success in building an aqueduct system in the Middle East, should we ignore that leadership?