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View Diary: Less than 5% Unemployment? (24 comments)

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  •  I agree with that. (5+ / 0-)

    I didn't want to get into the whole discussion of the offshore vs. onshore (shipping, retail, certain other aspects of distribution) aspects of overall production and delivery.  Rather, I was simply trying to make the point that any expectation that we can somehow "return" to at or below 5% domestic unemployment is currently unrealistic without accompanying policies and Congressional action to keep jobs in the US and invest in industries that spur domestic manufacturing.

    •  Krugman: China's currency. Carbon tax. Inequality (5+ / 0-)

      Krugman today calls for strong action to counter China's keeping its currency low, which keeps its exports dominant:
      http://www.nytimes.com/...

      A global carbon tax, or just fuel price increase due to peak oil or whatever, would help make imports more expensive, as it takes fuel to get them from wherever they're manufactured to the US market. But of course that's only true if the competing US goods are made of domestic raw materials. Shipping raw materials uses more fuel than shipping finished products.

      Alternatively the carbon tax could be assessed on the finished product instead of on the fuel itself.  

      (I'm using "carbon tax" as shorthand that could include cap-and-trade.)

      A separate problem is rising inequality. I think US policies can slow its rise somewhat, and offset its harsh impacts somewhat, but cannot really prevent it. With a globalized economy, I think it is inevitable that the income distribution within each nation will move towards the global income distribution. Universal healthcare, improving public schools, and making college affordable are big ways inequality can be somewhat ameliorated. I am glad to see Obama moving ahead with all three.

      "The true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals." - Barack Obama

      by HeyMikey on Mon Mar 15, 2010 at 11:27:22 AM PDT

      [ Parent ]

      •  Minimum wage, too. (0+ / 0-)

        Raising minimum wage will limit rise of inequality. But that's so only if safety net is adequate to care for unemployed.

        Yes, I do believe the minimum wage increases unemployment somewhat. But I nevertheless believe the minimum wage should get a family above the poverty line.

        "The true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals." - Barack Obama

        by HeyMikey on Mon Mar 15, 2010 at 12:02:33 PM PDT

        [ Parent ]

        •  Why not use a negative income tax instead? (0+ / 0-)

          Isn't it better for an employer to pay half the cost and the government to pay half the cost than for government to pay all the cost to get a family above the poverty line?

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