What could be done to create large scale employment?

There are numerous reasons for unemployment and while I'm not an advocate of the federal minimum wage it doesn't appear to be the cause of unemployment for Americans. I would cite two reasons for this. First of all most Americans wouldn't accept employment at minimum wage today. When I grew up we did when we were in high school for temporary work. Today the the game has changed and most in high school don't work at all because they choose not to.

Yes, we can cite that welfare programs contribute to people not becoming employed. This does not relate to the minimum wage but is a logical reason for higher unemployment numbers. Why take a job when welfare pays a person to sit on their butt? This would contradict Sowell's theory because it has nothing to do with the minimum wage (unless the argument was that the minimum wage wasn't high enough to get welfare recepients off their butts and back to work).

These are, of course, entry level jobs to begin with as no person would logically stay in a job that only pays minimum wage for an extended period of time. Once they establish a documented work ethic on their resume they would move to a higher paying job or the employer would raise their wages.

If we really want to look at where there are employment opportunities that are going unfilled it's in high paying technical manufacturing jobs. There have been several million unfilled high tech manufacturing jobs open throughout the entire recession because we don't have the people with the qualifications to fill them. I happen to be in that job role and I've had multiple offers for employment every week without interuption over the last ten years.

I do agree that the minimum wage does reduce employment but statistically it is really insignificant. Employers that require labor will pay it but will also require employees to work a little harder to keep from highing more employees. It's less expensive to pay a little overtime than it is to hire another employee. I would actually argue that the Payroll Tax is far more significant in reducing employment than the minimum wage.

 

If your labor is of low value, you better fear being replaced by a machine.

 

The only way to return to a period of time in US history when more workers were needed than could be found, is to abandon the technological advance of the computerization of society.

We could return to a simple machine world, and limit the production of any machine to only about what 10 humans could do in one 12 hr work period/24 hr cycle.

We could go farther back in history, before the industrial revolution, where virtually every job required actual human labor, however minimal it was. Thus, even the least skilled humans still could make a living. Of course, this would require that no other citizens could be used as slaves. All would be equally treated, and thus receive at least a standard wage and some rules for how much production is expected. Not too much, nor too little, so the equilibrium is maintained always having available jobs for future adult citizens.

If we expect that jobs will be plentiful with this 21st century technological evolution of AI computer and micro machine precision, then we are dreaming. Another 50 years, computer and machine will be able to do EVERYTHING!. No necessity for Surgeons, Mechanics, even Lawyers. The machine/computer will have so far surpassed human capabliity there will be human who can compete. The beginning of this was when Gary Casparov was beaten by computer 5 games lost, and 1 draw.

 

There is a fallacy related to technological automation of manufacturing. The employment of technology increases the number of jobs in the workforce. While a few "assembly" type jobs are lost the increase in the number of jobs to created the automated equipment, service the equipment, improve the equipment, to sell the product, support the product and maintain the product based upon increased production far exceeds the number of "assembly" jobs lost.

Two examples come to mind.

Compare the Morgan Car Company that hand produces each car with General Motors using automation to manufacture Chevrolets. There are millions of Chevrolets on the road requiring thousands of dealerships, technicians, gas stations, etc. but the number of hand built Morgan cars is so limited it doesn't even put a blip in employment numbers.

Next I would use the example of aerospace designers using CATIA at Boeing. Boeing initially thought that computer aircraft design would reduce the number of hours do design an airplane because the "drafting" is automated by the computer software. In reality it basically doubled the amount of time required on the 777 Program. Yes, the drawings and design were superior but it took more time to produce the drawings.

 

230 posts?

I've personally lost interest in this thread, but glad so many are enjoying it!

 

In my opinion, natural public sector monopolies such as the physical layer of infrastructure could be converted into public sector means of production, in much the same manner as Hoover Dam and the Fed.

With enough public sector means of production, there is no reason why real persons should be burdened with income taxes.