Wednesday, December 22, 2010

Solving the Unemployment Problem

On the one hand you have the unemployed and on the other you have potential employers with plenty of money stashed away waiting for the day to make a killing by employing people and engaging in business. 

There is plenty of work to be done in rebuilding our infrastructure:  roads, sewers, transit, railroads, renewable energy projects and the list goes on.  Unfortunately we have become a consumer nation dependent on selling trivial goods; iPods, loaded automobiles, bricabrac, eating out, cigarettes, and toys.  Unfortunately most manufactured goods are being manufactured overseas by our own manufacturers looking to make huge profits.  The size of the profits are our downfall, not the lack of profits.  Investors have become greedy and are not content with profits that were had in the past.  Add to the mix downsizing for profit's sake and you have a nasty recession.  What is the solution?

Threaten to take away a good chunk of the money stashed away and you will see jobs return.   Investors need incentive of one sort or another.  Tax incentives are a good means of encouraging investors to start businesses and hire people.  Lowering taxes only encourages hoarding of wealth.  So the solution is to tax that money being hoarded and use it to rebuild our infrastructure or give tax breaks to those starting up businesses and hiring people.  Either way money is being used and people employed.