3 ms·
Why would tax funded make-work result in lower wages across the board?
by jimmaswell 9y ago
Why would tax funded make-work result in lower wages across the board?
- jstewartmobile 9y agoBecause it's more like alms than a salary. Even on a meager salary, you can still be overpaid.
- xapata 9y agoYes, but that doesn't answer the question.
- pasquinelli 9y agoi think the idea is that unemployment should be higher. the fact employment numbers are kept high by bs jobs makes demand for labor seem higher than it is.
- walshemj 9y agoThat's assuming that the governments don't game the unemployment statistics (and they do agressivly) for example if the UK used the older definition of unemployment it would be higher than 4.3.
- jstewartmobile 9y agoThe article is "Why Wages Aren't Growing," not "Why are wages lower across the board?" I'd say make-work is why wages have only stagnated instead of catastrophically plummeting.
- hkmurakami 9y agoF35 procurement is made from something like 40+ states. This makes zero sense from an engineering/supply chain perspective (consider the fact that Toyota has the vast majority of its domestic supply chain within Aichi prefecture, up to 3 levels of sub-suppliers down). Much of defense spending is a jobs program that is brought home by congressmen to their home states. (and when it's a jobs program, supply of prospective employees outpaces demand, and thus you likely won't have wage growth)
- ianai 9y agoSounds less like a ding on defense spending than a ding on labor market demand. Imagine just how many industries and entire localities would lose their base income sources if defense spending were 0. I wonder how it would change if the “make work” government institution were NASA. I imagine their projects would employ more people across more diverse fields.
- intended 9y agoNah, NASA is in the end, specialist work. The Army can do everything from dig ditches to build sheds and structures - its there to have the sheer physical ability of killing its enemies to varying degrees of dead.