How to Fix Unemployment

by Roger Collins on August 15, 2011

in Big picture

I often tell my friends and family, “you can do anything you want but you can’t do everything.” Fixing unemployment is something we could do, but we can’t do it and also have a nanny state. Which do we want more? Here’s the recipe for full employment:

1. Quit paying people to be unemployed (unemployment insurance). Not being cruel here; I have no problem with a social safety net, but we have that. This would motivate a lot of people to work who are now more comfortable not working. Also, eliminating the corresponding payroll tax would reduce the cost of employees to employers which would increase hiring.

2. Quit outlawing jobs. Repeal the minimum wage. If minimum wage laws actually worked we’d make them $70,000 per year and win the war on poverty and lower middle class to boot. But of course they don’t work. They just make a whole class of jobs illegal. That’s stupid and immoral.

3. Keep deregulating until you finish fixing unemployment. All regulation makes it more expensive for businesses to do what they do. That means less profit, less investment, less growth, and less hiring. Start with the rules that don’t even exist yet, but scare employers away from hiring. I’m talking about ObamaCare.

Then keep repealing regulations until you’re done.

We would get to full employment quickly.

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{ 2 comments }

J. Bennett December 5, 2011 at 11:38 am

I’m curious…

What about the Financial Crisis of 2008? There was an unprecedented lack of regulation back then. Most people cried out for regulation & reform – I’m asking, & I’m not trying to be facetious… how would you have handled 2008 without reform which would by necessity require some form of regulation.

Roger Collins December 6, 2011 at 9:40 am

Thanks for commenting. I don’t think the statement “unprecedented lack of regulation back then” is true. Check out the graph here and observe what really causes the “giant sucking sound” for jobs – government grows, strangling the free market, in good times and bad.

http://www.heritage.org/research/reports/2011/07/~/media/Images/Reports/2011/07/b2586/b2586chart1750px.ashx

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