Solving US Unemployment

When we talk about US unemployment, we are talking about jobs, which is uppermost in the news these days. Roughly 10% of the potential working population is without a job. For the person without a job, it means available spending money less than what he would have if he were employed. The reduction is not great, because he is now receiving employment compensation from the people. The fact that continued unemployment compensation is questionable, because of a potentially bankrupt government, is a bit of a worry but not immediately so.

Now let's take a look at availability of goods and services. On a worldwide basis, there seems to be no shortage of goods or services for people who need, want, appreciate, and could use them. For example, I have two air-conditioners. Why would I need another? Could someone else use another air-conditioner? Perhaps, but maybe not. Maybe they like a higher temperature. Maybe they don't want to increase their electric bills. Maybe it would eliminate an excuse to spend a week or two at the shore.

Perhaps a member of some tribe in central Africa should have a new computer. But what would he do with it? He may want it because it looks pretty, but it is likely that he would have no concept of how to use it. Even if he did, how would he power it? How would he connect to the Internet? One might say all that is true, but the converse is to look at the great opportunities for developing education, electricity production, etc.. While all of that is also true,where would this person obtain the money to buy the computer, obtain his education to use it and pay his electric bill? It is likely that he couldn't. Then, someone must give it to him as a gift. This would also have its disadvantages in that subsequent gifts would eventually run out, as the donor becomes unable to handle the increasing quantity of gifts. This would result in developing an entitlement attitude, which likely will result in bloodshed, because the person receiving begins eventually loses sense of appreciation and develops an animosity to the donor.

Sounds kind of hopeless, doesn't it? But wait, it can appear to get worse.

Going back to worldwide availability of goods and services, we presently seem to be in approximate balance, with respect to supply and ability to pay. In all probability, availability of goods and services probably exceeds the ability of customers to purchase. Take a look at the multitude of cereal brands in the supermarket and the vitamin shelves. For Americans, there is an excess of products and services to purchase.

Let's now suppose that we make some kind of an arrangement where the 10% unemployed are now put to work producing goods and services. This will increase availability of goods and services by roughly 10%. For what purpose? We already have enough goods and services. One can say that that we should export these goods and services to the populations in other countries which have an insufficiency. But how will those potential customers be able to pay? Likelihood is they can't and we now resort to gift giving. But how long can it continue? Our country is already in deficit spending.

Another aspect is that eliminating the 10% US unemployment would not necessarily increase goods and services in the US by that amount, but would reduce imports so that the same amount of goods and services would be available here. This means that we would be trading jobs. Production workers in Guatemala and South Korea would then become unemployed, as their jobs would be taken over by Americans. This would be exactly the reverse of what has been taking place over the past 10 to 20 years. How would we feel about making a Guatemalan unemployed? Would our compassion allow it?

What's the bottom line? Follow two of life's rules. First take care of the number one guy. That's you. As your facilities and compassion allow, then take care of others. The second rule is Quid pro quo, which means something for something. That is, when you give to the underprivileged, expect something in return, either personally or to society. Follow these two rules, beware of usurpers, and the world will take care of itself.