The following paper has been written in view of the current unemployment issue faced by USA which is causing major financial crisis to the entire nation. The proposal below lists out the two alternatives to overcome this issue and how its implementation can benefit the country.
The current financial scenario of USA points out to growing number of unemployment amongst residents of the country. According to statistics the unemployment rate reported in May 2012 was 8.2%, whereas historically the unemployment rate in US has been at an average 5.2%. The rise in unemployment is a matter of concern and immediate steps must be taken by the government to overcome them. Only 69000 new jobs were added in May, clearly depicting the sorry state of unemployment in US. This is the third consecutive month for disappointing job numbers.
Economists have been unable to understand the steep in job numbers. First it was attributed to the companies over hiring in warm winters and had thus slowed down in the spring. But later the economic downturn in Europe was cited as one of the reasons. The employment market in US is largely depended upon how the European crisis is managed.
The implications of rising unemployment are wide-ranged. Inflation, rising price of fuel, staggering economy and people yet scrambling to pay the debts is a sorry state of affairs in US. The growing unemployment results in enlarged foreclosures, bankruptcies and homelessness. In the wake of rising unemployment, the administration is forced to boost the expenditure, which in turn leads deficits.
Continued unemployment is a grave matter of concern which needs to be dealt with immediately as it will drastically change the society at large. It could lead to a dysfunctional society that is unable to rise back to normalcy. (“Scherer R.”, 2012)
Even though there are many assurances regarding the closure of the recession, the effects of unemployment are yet witnessed across the country. Until employers are not satisfied that the times are good, unemployment will continue to rise. Solutions to this issue are being discussed by the government in order to tackle the problem, as it not only has a mental effect on the person, but is affecting the nation at large.
‘Green Jobs’ is one of the alternative solutions proposed to tackle the problem of unemployment. These jobs are created in the environmentally safe industries such as wind and solar power projects. But it is an elixir in these times of crisis, in order to create a sustained job market; the government must remove tax and other obstacles. Even though there have been efforts by the government to create new jobs, the results are not satisfactory as big government schemes almost always result in net job loss. The main reason for this being the cost of regulation which thwarts businesses from hiring, and the government spending crowd out whereas business spending through huge borrowing, increasing the interest rate of the private sector and tax hikes. Also such jobs schemes are developed to benefit the politicians, thus doing little for the people. Another major challenge facing ‘green jobs’ is its definition itself which does not specify which jobs are termed as green jobs. In order to promote the development of these jobs, the government can either cut taxes, or at least reduce it. Lawmakers can also open closed areas such as Continental Shelf for oil thus creating more opportunities. Streamlining the licensing of nuclear plants is also a way to increase job. This could generate better employment opportunities, which in turn would help stabilize the economy. Estimated 3million new jobs can be created by these measures. (“Saint-Paul G.”, 2012)
Welfare programs that aide those who are able bodied but employed by providing them compensation in order to live life decently. Unemployment benefits include insurance, subsidies and compensation. But this in many cases could cripple the economy. Instead another solution is the government funded employment of unemployed, but able bodied individuals. Job guarantee is a government funded employment program which guarantees work at a living wage. But many people argue that Job Guarantee inhibits people to search for new employment opportunities. Also stagnant jobs which otherwise are not done, would be revived due to unemployment, but Job Guarantee would not allow that as people would not venture into new avenues. But to tackle this unemployed can be forced to look out for job and report their search activity. Action can also be taken by imposing sanctions if a suitable job is turned down, or if there is a failure of application for vacancies.
Choosing the right Alternative
Green Jobs are a relief for unemployed individuals as it opens many job openings that could help overcome the unemployment issue faced by America. Economic opportunities are galore with the introduction of the green jobs as it will help in competitiveness gains for the economy. With the introduction of the climate bill, job growth would be in the renewable energy and energy efficiency sector. If the government passes climate bill to this effect, nearly 3 million job openings are estimated.
Another benefit of this program is that major jobs in this sector are created locally and are not moved oversees. This phenomenon hold true since the infrastructure in these sectors is difficult to transport this in turn has led to production hubs being created here. (“Bradbury J.”, 2012)
Budgetary and Staffing needs
In order to fully implement the Climate bill and boost green jobs the government needs to fund programs that are willing to setup energy establishments. Many states are offering loans to green companies boosting the setup of green jobs. But the main obstacle is that it becomes difficult to determine which project will be successful wean itself from government subsidies. Taxpayer money is put into the formation of these projects, which in return must show promising results and open new jobs, thus benefitting people. Government is backing these projects and offering subsidies as well as loans for the implementation of the green projects.
In case of staffing, the setup requires a huge staff right from engineers to receptionist. This in itself opens new job options. The governmental staff including of lobbyists and senators make up the staffing requirement for this proposed plan.
References:
1. Scherer R. (2012). Poor unemployment report points to troubled US economy. 30 June 2012. Retrieved from http://www.csmonitor.com/USA/2012/0601/Poor-unemployment-report-points-to-troubled-US-economy
2. Saint-Paul G. (2012). Alternative strategies for fighting unemployment. 30 June 2012. Retrieved from http://www.world-economics-journal.com/Contents/ViewFreeArticle.aspx?ArticleID=323
3. Bradbury J. (2010). Green Jobs and Competitive Industry: The net benefits of climate climate legislation. 30 June 2012. Retrieved from http://www.wri.org/stories/2010/06/green-jobs-and-competitive-industry-net-benefits-climate-legislation
