Replies to post #670348 on Zeev's Turnips Patch-No Politics (ZEEV)

[brightness]

Jobs are not something that falls from the sky. Jobs exist because someone somewhere have things that need to be done, and is able+willing to pay to get it done. There is always more work to be done; able+willing to pay the amount that a worker is willing to accept, and at the same time permissible by a third party called government, is the threshold that the desire of getting something done has to cross before a paying job is created. "Workers can not find another job" because:

1. Regulations and red tapes preventing the job from materializing. A babysitter working as independent contractors can get away with charging only $7/hr, but if she accumulates experience over time and opens her own daycare business to create economy of scale, she is not allowed to hire anyone for $7/hr thanks to minimum wage law mandating higher number than that.

2. Tax creating a gap between what employer pays and employees get, preventing the two from meeting each other's needs, and therefore preventing the job from materializing.

3. Existing debt obligations that the employee has function in the same way as a tax: something that the employer would have to pay, but the employee doesn't actually get to enjoy. Keynesian prescription to reduce that debt burden by monetary inflation takes much longer time than outright cascading default washout of old bad debts. The Keynesian solution would keep the banks that holds the debt in place sucking blood from the economy; whereas cascading defaults would quickly wipe out the enablers of those bad debts, so that the economy can reboot without the old debt burden. We shall see if this reboot process has to take the shape of massive or even hyperinflation under the Keynesian prescription eventually.

4. Meanwhile, so long as the Keynesian money pump is still in place, it's transferring wealth from real producers to the bad businesses that created and still hold the massive bubble debt . . . so the producers of goods/services that people do want can not afford to expand, while the zombie businesses know they are on government life-support and do not dare to hire new people.

[zab]

Yes disposable workers is the key, and you are 100 % correct in that employees find it very difficult to sedcure new positions. My conservative friends that I visited this past summer all complained that there children who recieved wonderful educations at great schools cannot find mcuh in the way of employment.

Graduates of Virginia Teck, Brown, Radcliffe, the University of Connecticut, and not only could they not secure any positions, but most are right back home working in the family businesses, dispalcing good people who did have jobs, but who are you going to pay in hard times, your family memebers, or people who were qualitfied and did a good job for you for all of those years.