American Unemployment Understood

America’s high unemployment is due to three major factors: 1) increased mechanization, leading to the need for less workers (this is the primary reason), and 2) the world has been rebuilt, the Marshall Plan is over, and America is no longer the world’s only major producer, and 3) unsustainable debt and inflation.

What do I mean by that? Especially point two, about the Marshall Plan, I understand can be quite confusing. Allow me to explain.

1. Increased Mechanization 
Increased mechanization obviously leads to less jobs for people. If robots, computers, and machines are doing hard labor for free, then why should employers hire more people? It just doesn’t make practical business sense. So how can we combat this, apart from government regulations? Simple: logical capitalism.

Logical Capitalism
What is logical capitalism? It is simply the art of making employers see capitalism in a logical sense. Let me put this in question form: What makes better sense, and will create more money for a company: employing hard workers, who appreciate their jobs, and using their wages will buy goods and services, and since what-comes-around-goes-around, will produce more money for the employer OR will using machines leaving people with no wages, thus not buying goods and services, overall harming the economy?

Rather than forcing private business to do something through government regulations, which actually reduces job creation (to deny this is literal ignorance of the facts), if we actually promote a healthy economy and human employment, then, and only then, will we see an uptick in American employment.

2. WWII Recovery Has Been Accomplished
Remember the Marshall Plan that was created to help Europe (primarily, but also Asia) recover from the aftermath of the Second World War? If not, click this link…

Now that you have finished your trip back to Middle School history class, let’s think about something: after the Second World War, the US was pretty much the only country that had a stable infrastructure that had not been directly affected by the bombing campaigns in the war. Thus, the reason our nation experienced unprecedented economic growth in the 50s was not because of delayed reactions to the New Deal (it was in effect for ten years, wasn’t working; there’s a reason the war and its industrial needs picked our economy up), but because America was rebuilding the world. This is a BIG reason our economy has began sputtering in the last decade. You see, there has been a recurring economic theme in the US since the end of the war.

1941-1945– Our national economy is boosted by young men suddenly being drafted into the Army, but still having pay; families have children doing neighborhood work, while mothers worked in the production factories.
1946-1968– The economic prosperity created by the Marshall Plan and other world-rebuilding helped create a new period, while sustaining the old, period of prosperity and economic growth in America and her allies.
1969-1979– Bad politics, mainly the Vietnam War and the Cold War (of which the Vietnam conflict was really just a smaller scale, “hot” version), had taken their economic toll. Along with social revolt and political reforms–and a high amount of corruption–the nation was in a terrible place politically and morally. To expect this to NOT show up in the economically was a terrible understatement.
1980-1991– The US had, due to President Reagan’s policies of low taxing and low government spending on anything other than military defense (to rebuild American Strength), experienced a period of economic growth and prosperity. This was also due to the fall of Communism in Eastern Europe creating a second type of Marshall Plan: the rebuilding of Eastern Europe.
1992-1995– As with all economic upturns, because of the Federal Reserve creating a false value to the dollar, keeping inflation/interest rates artificially low, etc. there was an economic downturn; e.i. a recession. Despite Bush the Elder’s military success in the First Iraq War, he couldn’t emulate his predecessor’s economic strengths and build on them, so he lost the election to President Clinton.
1996-2006– With the rebuilding of Eastern Europe in swing and the Tech Boom, America experienced, well, a boom. However, this boom morphed into a bubble, thanks again, to the Federal Reserve.
2006-today– Europe is rebuilt, the Tech Boom crashed, and our internationally-based economic system fell apart. Because the state-mandated workers unions were demanding higher wages than could be possibly paid, for jobs that were no longer relevant (Detroit’s auto-based economy is dead, so just let it reform itself! Too big to fail?! You’ve GOT to be kidding me; that’s how you kill your economy), employers moved jobs overseas, where they were cheaper, and the false philosophy of, “too big to fail” does not enter into any practical business owner’s mind.

See the common trend? The world is no longer dependent upon America for its goods and services. And we have NOT helped our situation by allowing the city dwellers to convince us that the blue collar work ethic is bad, and that white collar is the way to go.

2.5 Simply put, we are a nation of inherently blue collar workers, fighting for jobs in an artificial white collar environment. 

3. Unsustainable Debt and Inflation 
As a friend of mine said, “Our money isn’t worth much to other countries so we have to spend more of it. if we lowered the debt it would help the Dollar gain worth instead of constantly going down.” [sic]
How do we lower the debt? Simple. Balance the Budget. How do we do that? Simple. An amendment. But how can we get an amendment passed in our dead-locked Congress? Well, go read Article V to the Constitution. The States can call a convention for the consideration of Amendments in mass as well. I’m reading a great book at the moment, The Liberty Amendments by Mark R. Levin. So go take a look at this movement as well. I’m totally behind this idea, and honestly wouldn’t mind being there to watch it happen, as well. I’m going to do a lot to push for it to happen.

The key to helping our economy is to recognize that we need to reform our economy to a pre-WWII status–focusing on ourselves, and bettering our own nation. Only then, when we’ve taken care of our own, can we return to being the nation that led the world, and thus helped it in the best way, through American innovation.

A friend of mine said to me earlier, “…also, when we were a self sufficient nation high tariffs were imposed on imports in order to keep all kinds of manufacturing jobs from being outsourced. Just this weekend we were driving in rural North Carolina and so many places that used to have furniture and cloth factories are now practically ghost towns…” I’d agree.

It’s time to look inward, and address our own nation’s problems not from an international perspective, but from an American perspective; not with what has worked or failed in other nations, but what has historically worked here.

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One thought on “American Unemployment Understood

  1. Hi Noah,
    Great post! Historically, deep recessions have been followed by strong recoveries. The present, sluggish economic recovery is really going against historical precedent. The problems you mentioned help explain why.
    Corporate earnings have been rising ever since 2009, causing the stock market to rise. Companies definitely have the money to hire people, but they are choosing not to, for the reasons that you mentioned (mechanization, lower foreign demand, tax uncertainty due to debt crisis, etc.).
    Considering that GDP growth is managing to stay above zero despite all these headwinds, imagine how strong the economy would be if these problems were resolved!

    Samuel

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