How to Solve A Jobless Recovery?
Sunday, November 15, 2009 at 4:45PM In the last two days two columns have appeared in the New York Times Op-Ed pages discussing the continuing rise in unemployment. The first by leading economist Paul Krugman (http://www.nytimes.com/2009/11/13/opinion/13krugman.html)
discussed some of the tactics that the United States has been using to try and turn things around. Krugman feels strongly, as he has for many months that the stimulus package was not bold enough and would not stop companies from laying off workers, and obviously he's right. According to Krugman, Germany was much more bold, by not only infusing much needed monies into the faltering German economy, but also by passing legislation that gave employers incentives for retaining their workforce and further introduced job sharing measures that mitigated the damage. The government also introduced other projects to keep it's citizens working and earning a paycheck.
The column that appeared in the Sunday New York Times, by Bob Herbert (http://www.nytimes.com/2009/11/14/opinion/14herbert.html), highlighted the plight of the working class, especially minorities, young people and single mothers who are unemployed at a frightengly high rate. Herbert cites some pretty compelling statistics that give these workers little reason to hope, since many of the jobs they held prior to the recession don't seem to be coming back anytime soon or at all.
Another group that has been hit particularly hard are experienced workers representing many different industries, who have been laid off because they are considered too expensive or their skills outdated.
So what can be done? Will additional stimulus money infused into the economy help? Is a large scale project, similar to some of the programs introduced during the Great Depression in order? Would new legislation that gives incentives to various size businesses to keep people on the payroll also make a huge difference? How about forcing lending organizations to open up the credit markets, allowing all types of businesses and non-profits to expand and hire new staff, and also allowing new small businesses to obtain start up monies?
What else do you think would work? We need solutions, so let's hear from you.
