Here’s how we can solve the unemployment problem people. Everybody ask your employer for one day off from work every other week, and take 90% of your former salary and benefits.
The idea is a synthesis of Keynes, Hazlitt, and my own experience.
Keynes would observe that the US has a production glut and/or consumption deficit in most sectors except medical (in which unemployment is not a problem). However, the Keynesian solution of increasing money supply to stimulate consumption increases welfare dependency, militarism, and trade imbalances while devaluing the dollar.
Hazlitt would observe the problem of inefficient production and/or markets. His solution might be to reduce welfare and offer education and job placement programs, possibly focusing on the medical field. However, the pressure of “he who does not work, neither shall he eat” would have cruel consequences during the 5-10 year transition period.
On a microeconomic scale, I see an imbalance between the overworked and the unemployed. Due to the recession, employers are pressuring their workers to do more in less time. Some encourage unpaid vacations, which solves cash flow problems for for the individual employer, but is probably not helping the economy at large. However, when overworked employees initiate a 10% proportional reduction of hours and wages, the overall effect is an increase in job openings (or reduction of layoffs). In addition, many of the stressed out workers would be more productive during their working days, and most importantly, they would create a day for exploring alternative entrepreneurial ideas.
I am already practicing what I’m preaching, and have doubled down, taking off every Wednesday for 80% of my former salary. My employer is happy, and I am absolutely loving it.
Blurry Visions 