How to Create High Unemployment in Five Easy Steps

© Hugh A. Thomas  2013  All Rights Reserved

If you want to cripple the economy and make millions of people dependent on government handouts, if you want more political power so you can grow a socialist government and bring a great country and capitalism to its knees, then you need to destroy jobs by government action.  Afterwards, you can blame the free market and gain even more votes from those who meandered through the government run public school system. Five easy steps:

1. Raise the minimum wage.  Doing so will prompt many employers to find alternatives to their employees who have the lowest value to the company.  For example, if Bob makes $8 per hour sweeping the floors at night and the minimum wage is raised to $9, his boss might buy a new power sweeper that can sweep the floors in two hours rather than eight.  Bob will be replaced by a smarter worker who can operate the sweeper more safely.  The new worker might make $14 per hour but will not need to work nights.  This will save the company $36 per day minus the equipment depreciation.  In time, the new arrangement will be more profitable for the company.  Now, Bob is unemployed.  He can’t easily find anyone that will hire him for the new minimum wage.  He collects unemployment.

2. Weaken the incentive to work.  Bob knows he could get a job at the local sewage plant cleaning the holding tanks.  This job pays the new minimum wage and then some.  The problem is that the job is dirty, hot and smelly.  Cleaning sewage tanks is not the way for Bob.  He avoids that job, after all, the employment benefits have been increased and extended recently. Why scrape turds when the government will pay you to watch game shows on TV?

3. Increase regulation and taxes.  Bob’s former boss, Jim, likes Bob and was sorry that he had to let him go.  However, Jim sees a chance to rehire Bob at the new $9 minimum wage.  He needs someone to work the night shift assembling orders.  Bob could do this job with no problem, and the work does have a value to the company that is equal or better than the new minimum wage.  Jim looks into it and finds there is a new law that was just passed, The Night Shift Safety Act.  In this law every employer must provide a supervisor on site for any employee who is not wearing a GPS Vital Signs Monitor. The fine for non-compliance is $10,000 and up to 2 years in jail. The monitor costs $5500 and must be linked to a service that runs $300 per month.  The monitor must be certified by the government and inspected by the government every six months. Jim drops the idea.

4. Raise the minimum working age.  Raise the working age and combine that with numbers one, two and three and you will have created unemployment for millions of young people.  These kids need the work badly, not only because of the money, but because of the experience.  It is embarrassing to watch a twenty year-old man who can’t stock a shelf or use a shovel but that is exactly what is happening in America. Less teenagers are working, they have less practical skills and they are degrading the American workforce and therefore American competitive energy. Most of these teenagers are experts at video games but know nothing about how to chop firewood or plant seed corn.  Many of them are pathetic idiots. This culture of incompetence creates a generalized laziness in the workforce. This imbedded ethos further increases unemployment, in that businesses depending on a competent workforce will be less competitive in world markets.

5. Increase the age for compulsory education.   Keep them in school and out of the workplace. The longer they stay in school, the more government propaganda they can be taught.  This propaganda includes a large amount of false information concerning how government regulations and the minimum wage will create a better world.

Jim has had to comply with many new regulations and new taxes over the years.  The regulations are over 10,000 pages.  Many of them are contradictory and almost unknowable. He knows he is probably breaking hundreds of laws. Many of these laws carry thousands of dollars in fines or prison time. He has also experienced a decline in the quality of his new workers. He asks himself a question that thousands of others like him have asked: Why not have his product manufactured in China and just import it?  He finds a manufacturer in China, signs a contract with them, and closes his plant for good.

Twenty-five more people are then added to the unemployed rolls. Some of these spend a year or more gaming the system for unemployment benefits.  When the benefits expire, and when they have no further chance of employment, some will resort to crime.  They sell drugs or turn to home invasions.  The crime rate goes up, other businesses in the area are impacted, and the unemployment snowball grows. This is how it’s done.

Leave a Reply