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Making Unemployment Permanent

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The USA and Britain are on their way to make unemployment permanent for a growing number of people. By following right wing ideology – dismantling the infrastructure of the “State” that the ideologues hate so much –

* the ability to compete with emerging economies, and competitors, is undermined. If we fail to maintain the transport infrastructure which enabled us to produce and sell – then it will become ever more expensive and difficult to trade

* it’s not only transport – we waste our intellectual capital if highly educated people are not used, but instead left to unemployment. Now we see people being dissuaded from entering Higher Education – because of the costs – that will, in the long run, harm our ability to compete.

* reducing expenditure creates a spiral of depression – as more and more lose income they spend less. As they spend less – fewer goods can be purchased – and the tax income of Government falls – which leads to more cuts and more unemployment.

So – unless positive action is taken – unemployment becomes permanent for more and more people. We’ve stood at the brink once before – in the 1930s – but the adoption of greater involvement by the State led to a great era of prosperity – which was not just confined to the very rich. It was the greed of some which led to the attempts to cut down the State (including regulation). More and more people are playing the price of this ideologically led campaign.

We need to open citizens’ eyes to these truths. The “blindness” is clear, as Robert Reich wrote in his blog “I was on television yesterday debating a Republican who insisted unemployment benefits deter the jobless from finding work. Another partisan bromide. When, as now, five people are out of work for every job opening — and when, as now, unemployment benefits in most states are a small fraction of someone’s former wage — it’s bizarre to argue that unemployment benefits are causing unemployment.”

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Written by David

December 4, 2010 at 11:21 am

Posted in Uncategorized

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