David Leonhardt‘s overview of the “jobs slump” makes for dispiriting reasons, because describing the problem in economic terms infuses the discussion with helpless passivity. The root of the problem is social and political: the United States has become a country in which too many powerful people feel no less entitled to be rich than medieval aristocrats felt entitled to be privileged. Not only that, but too many ordinary Americans dream of becoming rich and powerful.

Policy makers could also help the unemployed by spreading economic pain more broadly among the population. I realize this idea may not sound so good at first. Who wants pain to spread? But the fact is that this downturn has concentrated its effects on a relatively narrow group of Americans.

In Germany and Canada, some companies and workers have averted layoffs by agreeing to cut everyone’s hours and, thus, pay. In this country, average wages for the employed have risen faster than inflation since 2007, which is highly unusual for a downturn. Yet unemployment remains terribly high, and almost half of the unemployed have been out of work for at least six months. These are the people bearing the brunt of the downturn.

Germany’s job-sharing program — known as “Kurzarbeit,” or short work — has won praise from both conservative and liberal economists. Senator Jack Reed, Democrat of Rhode Island, has offered a bill that would encourage similar programs. So far, though, the White House has not pursued it aggressively. Perhaps Gene Sperling, the new director of the National Economic Council, can put it back on the agenda.

Kurzarbeit is a great idea, and it may take hold here, eventually — but probably not because it eases any pain.

Drop me a line at rjk@dailyblague.com
This entry was posted on Wednesday, January 19th, 2011 at 10:30 am.