[Feedback] Proposed law to fix unemployment in the United States

Discussion in 'Economy' started by Misaki, Mar 21, 2012.

  1. Misaki
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    Misaki Member

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    The problem facing the US economy is simple: too many people feel obligated to work full time. Other than this, corporate profits and productivity are fine.

    All that needs to be done is to give businesses a standardized way to employ skilled workers at less than full time and clear benefits from doing this, so that those who wish to work less than 40 hours per week can.


    A third major way to determine employee compensation, in addition to a flat salary and hourly wages:

    The first 20 hours are paid at 1.2 times the current average rate for full-time work.

    Work beyond 20 hours in a single week is paid at 0.8 times the current average rate.


    This system depends on the employee and employer trusting each other. If they can, flexible hours are better. If there is no mutual trust, then a flat salary would be better. Part of trust is having additional options in case that trust was misplaced, whether it was trust in intentions or in capabilities. While options are available to everyone, it can feel like the cost associated with some options prevents them from being used in normal circumstances.

    The widespread adoption of this work concept would reduce unemployment and therefore increase the options available to an employee who was dissatisfied with their current workplace, but several additional legislative changes would be needed to increase trust between the employee and employer.

    The first is that while a business using this method could require employees to work the minimum of 20 hours per week, neither party would be penalized if that employee refused to work more than that and was separated from their position as a result. The employee could not be made to accept any unusual penalties in their employment contract for refusing to work more than the minimum of 20 hours, and the business would not have any of the usual obligations or fees from firing an employee for this reason.

    The second change would be to the overtime law, so that similar to salaried workers, employees who used this work concept would be exempt from receiving higher overtime pay.

    The third, for government employees, would be that additional hiring would be required within a certain time frame in any case where someone was forced to work more than 40 hours per week.


    Businesses who used this work concept instead standard wages or salaries would benefit for a simple reason: increased efficiency and productivity in the workplace. While the understanding of how to address inefficient practices by both workers and management has been continuously evolving, there is a concise description of the problem in the ideas of scientific management of the early 20th century:

    'Taylor observed that some workers were more talented than others, and that even smart ones were often unmotivated. He observed that most workers who are forced to perform repetitive tasks tend to work at the slowest rate that goes unpunished. . . . Taylor used the term "soldiering" and observed that, when paid the same amount, workers will tend to do the amount of work that the slowest among them does.'
    http://en.wikipedia.org/wiki/Scientific_management#Soldiering

    The unexpected ways that workers will change their productivity was noted in experiments at the Hawthorne Works conducted from 1924-1932. In particular, shortening the work day actually resulted in an increase in total output, and one experiment that linked pay to the individual productivity of workers in a group resulted in a decrease in productivity.
    http://en.wikipedia.org/wiki/Hawthorne_effect

    While financial incentives linked to performance are successful in some industries and occupations, experiments have shown that for mental tasks higher compensation can sometimes decrease performance.
    http://www.youtube.com/watch?v=u6XAPnuFjJc

    Furthermore, even physical work suffers a significant decrease in productivity for periods of scheduled overtime that last for several weeks. According to a review of the existing data on the use of overtime in construction work, "there is about a 10% increase in efficiency losses for each additional 10 hr per week added to the schedule beyond 40 hr."
    http://cmdept.unl.edu/drb/Reading/overtime2.htm

    A recent survey has shown the importance of social media to college graduates in the younger generation, with one in three saying that being able to use social media such as Facebook at work was more important than financial compensation and more than half saying that "if they were offered a job at a company that banned social media use, they would either turn it down, or find a way to flout the policy."
    http://www.dailymail.co.uk/news/art...important-large-salary-college-graduates.html

    This collection of evidence shows the potential benefit for businesses that compensate employees with both time and a higher average wage for increasing their productivity and accepting a variable schedule.

    While the necessary amount of work would be continuously negotiated based on the needs of the employee and the business, trust from having options available in the case of a disagreement would prevent either side from feeling like they are being exploited in the arrangement. Involuntary unemployment in the United States would no longer be a problem.
     
  2. starcraftzzz
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    starcraftzzz Senior Member

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    The benefit of having more people work (ie less unemployed) by making it so currently full time workers work part time; would be very good for the economy for a few reasons
    1) Becoming/being unemployed is associated with a lot more health care costs
    2) Every day that you are unemployed your skills decrease, meaning when the economy begins recovering we will have to waste resources retraining old workers
     
  3. Misaki
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    Misaki Member

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    There is another reason: so future generations don't have to pay the huge government debt created by supporting the working poor and the unemployed with welfare.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Unemployment hittin' Baby Boomers hard...
    :eek:
    GAO: 6-Fold Increase in Americans 55 or Older Unemployed 6 Months or Longer
    May 17, 2012 - – In the last four years, there was a 6-fold increase in the number of Americans over 55 who had been unemployed for 6 months or longer, a federal auditor told CNSNews.com.
     
  5. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says dey got nowhere to go an' nuttin' to do but stand onna street corner watchin' all the girls go by...
    :eusa_eh:
    688,000 More Teenagers Unemployed Since Obama Was Inaugurated
    July 10, 2012 - The unemployment rate for American teenagers (both sexes, ages 16-19) was 23.7% in June -- down from a seasonally adjusted 24.6% in June 2011, but above the 20.7 percent in January 2009, when President Barack Obama took office.

     
  6. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    A liberal will lack the IQ to understand how capitalism creates full employment while liberalism creates high unemployment, recessions and depressions.
     
  7. waltky
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    waltky Wise ol' monkey Supporting Member

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    Mebbe she needs to join the ranks of the unemployed - might change her opinion...
    :eusa_eh:
    Labor Secretary Cheers Youth Unemployment Rate of 17.1 Percent
    August 23, 2012 – Labor Secretary Hilda Solis cheered a slight decline in the youth (16-24) unemployment rate, saying that it was a sign that the job market was improving for America’s young people.
    See also:

    Claims for unemployment benefits rise 4K
    23 Aug.`12 WASHINGTON (AP) – The number of people seeking first-time unemployment benefits rose a slight 4,000 last week to a seasonally adjusted 372,000, evidence that the job market's recovery remains modest and uneven.
     
    Last edited: Aug 23, 2012
  8. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    too stupid!!!! markets were higher regulated by Fan/Fred, Federal Reserve, CRA, FHA, etc etc.



    What planet has this liberal been living on??
     

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