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The following article was published in our article directory on August 28, 2010.
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How to solve the employment problem

Article Category: World Affairs

Author Name: xia zihui

The most significant since the Great Depression ridiculous things, is the name of Congress to ensure aviation security bill passed by 100 billion dollars to keep with this the work of 140,000 teachers. This despite good intentions, there is no doubt judging is wrong in two ways. The first is whether such work is worth preserving at the same time it so that state governments were happy to figure out how spending this wealth of rare accidents. Second, these federal spending on economic stimulus plan is at best only short-term effects of higher employment. So, If you want to seriously address the serious unemployment problem, it really should rethink the root of the problem.

For the government to support employment at a price. Extended to cover more teachers or employment expenses, or any expenditure of public projects sooner or later, by the taxpayers. So taxpayers will not willingly accept company also contracted workers, consumers will be hesitant in spending.

More negative feedback to explain why the stimulus side. Japan have tried our best to provide training for all types of low-income and other forms of assistance, but such practices Querang unemployed under the age of 35, more and more people. Denmark to prevent the expansion of government funding cuts to achieve temporary employment, providing training for the unemployed, and also provides them with financial assistance of up to 4 years and has inspired, but this practice was subsequently halfway fate.

There have been even if the current U.S. economic stimulus plan is spending a lot, no matter how the Government to trade frequently indicated, but are difficult for the unemployment rate of 9.5% in turnaround situations. Coupled with those who give up looking for work to people, the unemployment rate will reach 16.5%, one third are in the foreseeable future, no employment category.

However, in reality, is not no way to create jobs. The following are some practices that can be considered.

Talk about shared economic

Appears to end in 1985 the unemployment rate as high as 7 percent and economic stagnation, the current Harvard professor MartinLawrence Weitzman was proposed to stimulate the employment of the new concept, that is shared economic. Although this concept did not catch on then, but it was "The New York Times" called "from Cairns in the best creative." Nearly half of the unemployed had no work within the first six months of opportunity, when the 7% unemployment rate seems to be the goal when, Weizman's bold idea should be reconsidered in the.

By Weizman's theory, the trick is to lower the unemployment rate paid to the employee a fixed percentage of sales revenue or profits. In addition to still be part of the hourly pay, the sharing of some able to bring incentives to expand employment. Extreme example is, if companies no matter how many people are employed in order to pay a fixed percentage of salary, any additional marginal cost of zero staff. As long as new employees below the maximum acceptable amount of business to continue hiring still non-destructive operation, and the additional staff expenses only in the diluted part of total remuneration of existing staff.

Revenue or profit sharing has a similar effect. Each additional staff costs of actually shared by the existing staff, new employees of their total compensation to be diluted. If employees receive half of the revenue, the company will continue to increase employment, until the last one can not increase the sales staff.

Dilution effects are considered to cause bad effects on the employees. Adjust the salary structure, but share the income, so that employees receive the same current income. In the development of shared revenue plan, business plan to make salaries more attractive to potential job seekers, will accept the employment limit the number of people do. A certain amount of revenue sharing in the context of the number of businesses employing many will feel the lack of competitiveness of its compensation plan, which thus can not increase employment. Full share in the economic environment, companies may increase the number of people employed, but due to the dilution effect of it appears in the competitive labor market can not continue to increase low employment.

However, the effects of economic recession it is not the same. There just before the recession, companies may want to increase employment. Affected by the recession, but its labor demand had dropped to half. But now the situation is different and that the company can do without cutting to the case of employees employed by this half of the new employees. Absorb these new jobs, in reality, all the existing staff salaries are part of the reduction. However, as a result of declining employment opportunities outside the company reduced, existing staff will also have to accept that outcome.

However, the concept of sharing revenue nor prudential. Although it can stimulate the poor economic situation at the time of the enterprises to maintain increased hiring, but it also reduces the incentive to expand the role of investment demand. Can start with less capital and more demand driven marketing action is worth doing. However, if employees share the half income, then the enterprise marketing expenses due to only get half after a certain amount of income can not be profitable investments. Although a better idea of profit sharing, but this will have on the accounting controversy.

Despite some problems, but revenue sharing is still possible to improve the current stagnation of the status of ideas. Traditional compensation contracts allow enterprises to lay off recession, the unemployed because of the loss to buy and ability to repay their mortgage loans, layoffs practice is in fact the damage to other industries, resulting in the recession deepened. The current stagnation of the problems cited as Adam Smith baker and butcher the relationship between the specific companies that only care about their own interests, the layoffs will harm other businesses. If the company can coordinate with each other, they certainly agreed to increase employment. Enable enterprises to increase based on the pay system to adjust employment idea, Weizman proposed inter-enterprise coordination theory. This excessive demand or call reserves to address the problem of unemployment and employment provide a buffer mechanism.

Government may consider not to pay big changes, only slight changes in the way of its accounting practices to adjust. Enough to affect the small business tax breaks pay system could cause big changes. In addition to compelling the Government as employer, will share the economic concepts of private entrepreneurs into the employment of a huge labor pool of appetite.

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