Tomorrow, President Barack Obama opens the job summit. He will be bombarded with ideas. Here are some of mine. Beware, given the gravity of this problem, I am not holding back.
Thoughts
Unemployment is not primarily an economic problem. It is a social problem. Growing unemployment leads to unrest, unrest leads to social destruction, social destruction leads to chaos and so forth. Therefore, solving unemployment (directly) is the most important goal of an economic agenda.
Assumptions:
(1) Stimulus $$$ given to banks and Wall Street are not enough to create employment or wealth.
(2) Without increasing gainful employment our economy and society will suffer continued destruction of wealth and the social fabric.
(3) Unemployment and underemployment are accelerating in growth.
(4) Economic depression are the result of the stagnation of the transfer of wealth.
(5) Communities and States will continue to disintegrate without increasing revenues from job growth.
Solutions:
(1) Create FDR style WAR ("Working Asset Recovery") Boards in every census-measured MSA (Metropolitan Statistical Area). The purpose of the boards will be to drive employment in their regions with federal assistance and guidance. They should be staffed by local community members, however majority voting power should be reserved for Federal officials. Communities must be told they need to create jobs or else (see item 3).
(2) Tax or Bond the "plutonomy" to fund job growth in their local areas. Any area with high net deposits/assets and high poverty/unemployment needs redistribution of wealth.
(3) Withhold federal stimulus monies, from any state or MSA that does not increase employment and effect economic justice. Withhold industry tax credits, allowances, deductions from any industry over $50 million that does not continue to grow employment at some mandated rate.
(4) Create strong guidelines for community employment that administrate economic justice, equality of opportunity for all workers and put environmental concern on the top of the list for any employer that accepts federal monies or tax credits.
Here are a few more proposals:
(1) Put a moratorium on all foreclosures. Starting now. How does anyone gain from another foreclosure?
(2) Create debt-relief for the middle class besides bankruptcy. Force Visa/MasterCard to accept low interest treasury bills in lieu for up to $20K of credit card debt relief for each household. How does anyone gain from another personal bankruptcy?
(3) Emphasize employment and revenue for families with children above other groups. Let's face it: an economy that caters to the young or retired and aging more than families does little to strengthen our country.
(4) Limit HI Visas. Retrain american Cctizens instead.
(5) The cost of energy is destroying economies in America. Nationalized wage and price controls should be used to control the retail price of energy. A "producer tax" on energy companies should be used to pump excess profits back into the economic system.
(6) Nationalization of banks, oil companies, other energy companies, knowledge economies should be considered if these industries don't help enough with the "employment agenda".
Implementation
To avoid unnecessary delay, the President should consider unilateral action in regards to solving unemployment. He has a lot of leverage before the direct threats of nationalization and socialization need to be issued. And he should use those threats liberally before U-3 heads north of 11%. Once U-3 starts to rest between 14% - 18%, the battle will have been lost. Economic chaos and wealth destruction have series multiplier effects.
Final comments
The libertarian right wing will scream "Socialism". Many of them make good off America's vast resources, military power, tax credits and federal infrastructure. Time for a reality check. It is now irrelevant to fear "Socialism". We need stronger federal intervention to save capitalism (if it can be saved), our families and our country.
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