Ottersmacker wrote:
Regarding jobs, to some extent i would say that in the event of real necessity, a state can employ everyone who is willing to work ("job guarantee" is a good search term), in fact i think it should because it provides labour for stuff like infrastructure upgrades and also provides a basic income to those who need it. There is always stuff that needs to be done, might as well put people to work. After all, the unemployed are factually in the public sector just as they would be as JG workers - the difference being that when unemployed, they are 1) not producing anything but still consuming stuff; 2) not boosting overall sales etc in the economy because of fail income.
I doubt this should occur in any way in a well managed state, and we saw how well it worked for the soviet union but regardless, that can only happen if the state that employs all of its people issues its own fiat, or there would be no money to pay the workers.
What we see atm is both simple and complicated. The simple part is that public wealth is transferred to private parties. For instance, if a state destroys jobs, and maintains a constant 20% unemployment rate while handing out rather generous unemployment compensations, the private sector benefits from massive unemployment, thus lower salaries (ppl in dire need accept hard jobs for shit money) while it's the average worker that on top of having a shit income, pays with taxes for the unemployed, thus avoiding a revolt and maintaining the status quo (cut the compensation to 5 Millions unemployed ppl and you're good for a revolution). Don't even get me started on private bailouts with public money.
The complicated, imbricated part is that if a state needs more money to function because it has a growing debt service to pay, the inflation is high etc. it will raise taxes. If taxes are raised people have less to spend everyday. People lose their jobs (that holidays booking store doesn't work as well as it used to). The state gets less taxes from the employed and spends more on unemployed ppl. Then it will need to raise taxes on private companies as well. Until some point where the companies move out to more fiscally easy lands. More unemployment. I think there is no real conspiracy from this point of view because at the end of the day nobody benefits from all this, we all lose. Except shareholders on short term, and warmongers on long term maybe.
There is maybe no magical solution to this downard spiral as politicians like to claim; but I think there are simple emergency fixes to apply tho : borrow to yourself or else at 0-1% so debt service doesn't grow exponentially, stop spending in wars and shit.
But the pressure from lobbies must be too strong apparently.