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.