Changing the Unemployment Picture

Will US unemployment decline significantly in the foreseeable future?

The answer is no. The only qualification is that we can possibly achieve more complete socialism and hire significantly more government workers, who would then be considered employed. The claims of the newly elected House of Representatives tend to forestall that, but we will have to wait and see.

The ideal employment rate is considered 3%. More realistically, most pundits place it at 6%. It is presently 9 to 10%, not only in the US but also in Europe.

There are several reasons for this increase from the standard. Government has made it more convenient for the unemployed to stay unemployed, and coincidently keeps the unemployment rate at the high level. However, the major factor is the productive capacity of private companies, which supply our physical goods and much of our services.

The simple fact is that these companies have become much more proficient in supplying goods and services with fewer employees, through increased use of new technology and systems development. They need fewer people to produce the same volume. Part of this program has been to move the manufacturing supply base from the US to foreign countries, where labor per unit product is significantly less than the labor cost in the US.

There have been and will continue to be cost increases to the consumer in goods and services, but these cost increases are not caused by shortages in productive capacity. They are the result of decreasing value of the dollar; i.e. inflation. The fact is that there is a surplus of available goods and services. Visit a local supermarket and check your possible choices in the cold cereal aisle. In most cities there continues to be a drugstore on every major corner, and where those are missing, gas stations have taken their place. Be not confused by the fact that gasoline prices are approaching $3 per gallon. That is a result of government activity in handling the money supply, not availability of gasoline.

If the handwriting is on the wall to accept 9 to 10% unemployment in our society, what can the ordinary citizen do? If he is now unemployed, he can continue to look for another job, which will probably be futile. A more realistic approach is to accept the position of unemployment and become a ward of the state. For those who have a job, they likely have the capabilities to survive in a competitive job world. They will be faced with higher taxes to support the unemployed as wards of the state.

Is it possible to break this system? Possible but not likely. We have traveled down the road toward socialism for the last 50 years, so that much of the public is now inclined toward socialism, which is to let government handle everything. However, government elected officials and employees, by the nature of their jobs and benefits, do not have the incentive to imaginatively produced programs which would generate real jobs. Real jobs are created by people who are hungry for food, recognition, or private wealth. That is the real capitalistic segment of the society. While it still exists, there is now a more futile atmosphere and government has imposed various regulations, which would defeat the aspirations of new capitalistic enterprises.

Is the expectation of change futile? Not entirely. The new House elected in November will have a tendency to fall into the traditional ways of Washington. To avoid that happening, such that we can start to dismantle big government, people of independent and capitalistic bent must continue the pressure which was started prior to the November election. The Tea Party is our best organized hope. Give it your support. Additionally, stay in touch with your Congressman to give him your opinion on anything you think is significant. Continually remind him that if he doesn't perform in a productive manner of reducing the size of government and various restrictions on business, he will lose your vote.