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If full employment is a pipe dream, why are we routinely treating unemployment as a personal failure?

supertrope 4y ago
Please stay where you are. Officers have been dispatched to your location to assist you. In all seriousness it’s because employers hold nearly all of the bargaining power and mindshare. The recent focus on central banks raising interest rates to decrease economic activity with inflation as a primary target and restraining wage growth as a secondary target shows that decreasing workers’ average bargaining position is official government policy. In the US they sugarcoat it by saying they’re trying to control inflation and only have unemployment go up marginally. In New Zealand they’re more explicit and say tens of thousands of people need to become unemployed to stabilize inflation.
luckylion 4y ago
We don't, but we do consider prolonged unemployment as a personal failure. Having Short-term unemployment is fine and a sign of a working economy where people move between companies. Long-term unemployment is something else entirely: it's a sign of people quitting the labor market and deciding not to contribute to society. People here love Marx, yet they keep forgetting what he had to say on that issue: "From each according to his ability, to each according to his needs". Long-term unemployment means you're not giving according to your ability (and thus shouldn't receive according to your needs).
- majewsky 4y ago
  > Long-term unemployment means you're not giving according to your ability (and thus shouldn't receive according to your needs). Or there are literally not enough jobs because of failed economic policy. We have this situation in Germany right now. There are about 2 million job openings, and official statistics report about 2 million unemployed. That makes it sound like it's only a matching problem (i.e. if we just enticed the unemployed to retrain or relocate, everything would sort itself out). But the statistics are "optimized" to look nicer than they actually are: Unemployed over the age of 58 are just taken out entirely, as is everyone currently undergoing retraining. (It's a meme in Germany that the unemployment office will send people to Microsoft Word courses for the 10th time because being in the course means they don't show up in the statistic.) And then there's also the issue of people working part-time who actually want a full-time job. When you add all that up, we have around 4 million unused FTEs in Germany competing for 2 million open positions. That cannot possibly add up. If the politicians were serious about getting everyone into a job (which they sure say a lot into microphones), economic policy would need to be changed to incentivize job creation a whole lot more (e.g. by cutting down on NIMBYism in the construction and renewable energy sectors).

Please stay where you are. Officers have been dispatched to your location to assist you. In all seriousness it’s because employers hold nearly all of the bargaining power and mindshare. The recent focus on central banks raising interest rates to decrease economic activity with inflation as a primary target and restraining wage growth as a secondary target shows that decreasing workers’ average bargaining position is official government policy. In the US they sugarcoat it by saying they’re trying to control inflation and only have unemployment go up marginally. In New Zealand they’re more explicit and say tens of thousands of people need to become unemployed to stabilize inflation.

luckylion 4y ago

We don't, but we do consider prolonged unemployment as a personal failure. Having Short-term unemployment is fine and a sign of a working economy where people move between companies. Long-term unemployment is something else entirely: it's a sign of people quitting the labor market and deciding not to contribute to society. People here love Marx, yet they keep forgetting what he had to say on that issue: "From each according to his ability, to each according to his needs". Long-term unemployment means you're not giving according to your ability (and thus shouldn't receive according to your needs).

majewsky 4y ago
> Long-term unemployment means you're not giving according to your ability (and thus shouldn't receive according to your needs). Or there are literally not enough jobs because of failed economic policy. We have this situation in Germany right now. There are about 2 million job openings, and official statistics report about 2 million unemployed. That makes it sound like it's only a matching problem (i.e. if we just enticed the unemployed to retrain or relocate, everything would sort itself out). But the statistics are "optimized" to look nicer than they actually are: Unemployed over the age of 58 are just taken out entirely, as is everyone currently undergoing retraining. (It's a meme in Germany that the unemployment office will send people to Microsoft Word courses for the 10th time because being in the course means they don't show up in the statistic.) And then there's also the issue of people working part-time who actually want a full-time job. When you add all that up, we have around 4 million unused FTEs in Germany competing for 2 million open positions. That cannot possibly add up. If the politicians were serious about getting everyone into a job (which they sure say a lot into microphones), economic policy would need to be changed to incentivize job creation a whole lot more (e.g. by cutting down on NIMBYism in the construction and renewable energy sectors).