The president, having just announced that we would be wasting tens of billions of dollars more in a pointless, tragic, immoral war in Afghanistan, will hold a job summit tomorrow. It is a very small point but telling that we would first be told that vital resources will be spent in a conflict that is unwinnable (in whatever way you define "win") and, only then, do we turn to the human crisis at home–at which point I guarantee you that some political voices will tell the country that, sorry, the cupboard is bare, there is no money to spend to put people back to work.
To move to the positive, here are four proposals from the Center for Economic and Policy Research about what can and should be done:
1. Flexible employment credits to allow employers to shorten work hours instead of laying off workers: Each month, employers are laying off close to 2 million workers. If the government gave employers tax credits to shorten work time while leaving pay unchanged, it could reduce these layoffs. If the number of layoffs fell by just 10 percent, this would have the same effect on employment as adding 200,000 jobs a month or 2.5 million a year. Germany has used this mechanism to keep its unemployment rate from rising, even though it has experienced a steeper recession than the United States.
2. Support for education, health care and other vital state and local government services: Under budget pressure, state and local governments across the country are cutting these services and laying off workers. Aid from the federal government can allow these workers to keep their jobs and services to continue to be provided.
3. Direct job creation: There are parts of the country where the unemployment rate now exceeds 25 percent, with youth unemployment well above 40 percent. To prevent a generation of young people from being locked out of the job market, it is important to have public service jobs that can employ people immediately.
4. Right to rent for homeowners facing foreclosure: If homeowners facing foreclosure had the right to remain in their homes as tenants paying the market rent for a substantial period (5-10 years), it would provide substantial housing security to millions of families while stemming the nation’s rising number of foreclosures. This policy could also provide an economic boost since it would free up money for millions of homeowners who are now struggling with mortgage debts that they cannot pay. This would in turn lead to a boost in consumption that would increase demand in the economy."
