Q2: Potential for Full Employment


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 Q2: Potential for Full Employment

2a. Is it theoretically conceivable and practically feasible to formulate a strategy that can eradicate the problem of unemployment globally within a 10 year time-frame?

2b. What social trends will enhance the prospects for achieving full employment in the future?

2c. How is the problem of unemployment related to the structure of society and is it within our capacity to change that structure?

2d. Philosophically, it is said that every problem created by human beings can be solved by human initiative. This principle is often described as the essence of the American spirit, responsible for its rise to global pre-eminence. Is this principle relevant to the issue of unemployment nationally and globally?

2e. It has been said that problems come to us for our progress. Is there truth in that statement with respect to the global employment challenge? If so, what is the progress humanity needs to make?

2f. What practical strategies can be adopted to stimulate employment growth and reduce unemployment?


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Global Opportunities Database

Organization is one of the most effective ways to solve the employment challenge, and the Internet stands out in this regard. One way to take advantage of the Internet’s organizational power is to develop a web-based database of every emerging technology in society, and then for each, list out all possible jobs that could be created from it. E.g., we identify the Google Wave collaborative tool as a new emerging technology, and then list out the types of jobs that could be produced by using it. Say, 50 types. We could do the same for the GPS capability of cell phones in developing nations. And so forth for every emerging technology and potential job types each could produce. (There can literally be thousands of types, in both technology fields, as well as new non-technology fields such as construction or accounting, though technology might be the best place to start.)

People can then access this Internet based system and match their interests to these potential jobs. That way, millions of new jobs can be created where no such jobs existed before. By the way, a potential job entry would not just be a mere listing, but would include a detailed explanation of it, as well as what is required of the individual to make that job a living reality in his or her life.  The system would also provide information on how to develop the entrepreneurial spirit, critical for people's success.

One job opportunity databases that already exists comes from Entrepreneur magazine at its online site.* There people can browse opportunities that are emerging, and match them to their own interests. Entrepreneur has already identified many potential jobs, and categorized it for easy access and retrieval. A Global Opportunity Database (GOD) could take this concept to another level, eliciting job opportunities in every facet of life, while being advocated proactively by governments and other institutions around the world.

Tens or even hundreds of millions of jobs can thus be created where there were no such jobs before. All it would then take is the interest, ingenuity, and entrepreneurial spirit of the individual.

* http://www.entrepreneur.com/businessideas/index.html

Finally, the entire system can be placed under the auspices of a Global Opportunity Corps (GOC), which can provide tactical, organizing, and administrative functions for its deployment.

 

Responses to Question 2

2b. What social trends will enhance the prospects for achieving full employment in the future?

A number of fundamental social trends are opening up new opportunities to generate full employment.

  1. Emerging, converging and interconnecting technologies such as Internet, Social Networking, Smart Phonesthat interconnect and integrate people and fields have the power to create new opportunities in the interstices between existing social activities, opening up creative potentials that did not exist. They enable individuals to more fully leverage their existing knowledge and skills, expand these capacities and find others who have a specific need that matches their capabilities. 
  2. Man is slowly becoming more proactive, rather than reactive; more willing to anticipate and solve problems BEFORE they fully manifest; a reversal since the dawn of time. In a word, more rational.
  3. Even as there is an increase in social and political freedom, there is also a heightened sense that we need to COLLABORATE to resolve problems, to learn from each other and find a common basis for cooperative action.The world is increasingly moving towards greater collaboration and unity to resolve problems. Economic globalism is a first step, though it must go beyond mere trade to shared economic values such as full employment.
  4. There are graded steps to globalism from material economic to value-driven economic, and then onto social and cultural integration, which are more powerful still.

2c. How is the problem of unemployment related to the structure of society and is it within our capacity to change that structure?

Unemployment is due to the fact that the structure of society is inadequate to fully and effectively harness the social energy and potential that is emerging. In some areas such as it is too rigid, limiting and inflexible, as in present systems for education and vocational training. In areas such as international financial coordination, it is too loosely and poorly structured. Though there is some degree of organization; each part is pulling in its own direction at the expense of the rest of society. While it engenders freedom, it lacks in collaboration. Where collaboration is missing, things fall into the cracks, which eventually manifests as a serious problem, as we saw with the recent financial crisis. It occurs in a thousand serious way; unemployment being an example.

Unemployment is a problem where parts are not connecting with other parts because of missing structure and organization. That of itself is due to wanting values about others (peoples, nations, organizations) outside our limited field. It can be overcome, allowing all entities to see the value of a more connected structure and organization to resolve problems like unemployment.

Full employment is simply a more tightly wound infrastructure where the parts are deftly interconnected, even as each simultaneously fulfills its own potential through the exercise of its full freedom.

2d. Philosophically, it is said that every problem created by human beings can be solved by human initiative. This principle is often described as the essence of the American spirit, responsible for its rise to global pre-eminence. Is this principle relevant to the issue of unemployment nationally and globally?

We can create anything in the world if our mind perceives the possibility. This is what makes we humans unique. And yet we have only tapped into a fraction of that power.

Americans have succeeded because they conceived of ways to improve the world physically by envisioning it in their minds. They saw the way to mass production and organization of the material means of society, which has turned the nation into the greatest economic force in world history. There was utter freedom to do so, and they took advantage of it.

But that is not enough. There are also human values beyond mere economic ones. We see one-by-one America (and Europe) adopt these social values. In business, there is pregnancy leave, worker’s compensation, health insurance, and so forth, because the human individual is increasingly valued. The right to a job is also a value we can envision. So too is full employment. Just as America envisioned material values and achieved them, it can increasingly envision new social values. Full employment is one example.

So yes, we can use the model of the American spirit of human initiative to resolve all issues facing the world.  Once we perceive the social value of full employment, the will to see it come about can be forged. America started at the material/economic level. We must go further and work for the Dignity of Man at all levels – psychological, social, and spiritual.

2e. It has been said that problems come to us for our progress. Is there truth in that statement with respect to the global employment challenge? If so, what is the progress humanity needs to make?

If people (or nations or peoples) examine their past problems, they will see that it turned out to be the greatest spur for progress in their lives, as WWII brought the UN, the EU, globalism, the end of colonialism, etc. etc. Thus we could say philosophically that positives are negatives in disguise. It seems to be the secret spur of Nature that propels us forward.

2f. What practical strategies can be adopted to stimulate employment growth and reduce unemployment?

GLOBAL OPPORTUNITIES SYSTEM (GOS)
Identify all emerging technologies in all fields. Discover what those new types of jobs are. Build it into a database. Now match people to those new jobs. Do it through the Internet. In the process, help them become entrepreneurial so they can realize each new job possibility. This will generate vast quantity of jobs, as well as new fields in society that will in of itself generate even more jobs. We can rapidly move to greater and fuller employment this way.

GLOBAL OPPORTUNITIES CORP (GOC)
Create an international Marshall Plan for new jobs utilizing the approach above (GOS).

Get the full backing of government to promulgate the effort. Bring in the private sector to strengthen it.

 

Roy Posner

 

Responses to Question 2

 

2a. Is it theoretically conceivable and practically feasible to formulate a strategy that can eradicate the problem of unemployment globally within a 10 year time-frame? Theoretically yes, Practically no. Also depends on the definition of unemployment. 

2b. What social trends will enhance the prospects for achieving full employment in the future? Depending upon definition, it is both a matter of social and economic contexts, and not merely social. Also national and local governance systems and institutions. 

2c. How is the problem of unemployment related to the structure of society and is it within our capacity to change that structure? Systems and structures can be oriented towards employment generation, but that has to be gainful. Also depending upon population-resources ratios, and involving diverse aspects, such as self-employment and public support schemes, entrepreneurship environment, corporate responsibility, taxation, budgets, culture of government organizations and infrastructure, among others. 

2d. Philosophically, it is said that every problem created by human beings can be solved by human initiative. This principle is often described as the essence of the American spirit, responsible for its rise to global pre-eminence. Is this principle relevant to the issue of unemployment nationally and globally?  Good philosopy and even true. Only question is with which policy, strategy, plan and projects, with due people, private, public partnerships -locally, nationally, regionally and globally; and concrete and committed. 

2e. It has been said that problems come to us for our progress. Is there truth in that statement with respect to the global employment challenge? If so, what is the progress humanity needs to make? Promote leadership, ownership, entreprenurship and stewardship for sustainable management and utilization of human and natural resource assets, for growth-oriented agriculture, industry and tertiary sectors.. - at all levels, say of of rural, urban, peri-urban and well crafted within local and national contexts, while leveraging the globalization process, which has come to stay -warts and all..

2f. What practical strategies can be adopted to stimulate employment growth and reduce unemployment? Job growth through investment in and capacity building for business development and diversification and through publicly promoted gainful activities and self employment opportunities, space and scope for which has to be designed and developed through soft-policy support, incentives and rigorous monitoring -inter-alia involving transparent systems, responsible entities and credible national agencies. 

 

Innovative use of employment insurance


Response to EGC Seminar 2, Question 2f. What practical strategies can be adopted to stimulate employment growth and reduce unemployment?

Though we usually connect technology with the advance of civilization, organizational improvements and innovations also play an equally import role in economic growth and social development. Mass production, franchising, mail order catalog, the legal status of limited liability corporations,  vocational schools, Internet and social networking are examples of organizational innovations that have spurred economic advancement.

Insurance is one such important organizational innovation that has played a key role in improving the quality of life. Though initially it was introduced to diminish the risks involved in sea-going commerce, it was gradually extended to cover risks to life, property, health  and many other things. New and improved forms of insurance are continuously being introduced. These innovations include measures that reward the insured for adopting behaviors that reduce risks and, therefore, the costs of providing the insurance. Car insurers reward car drivers who comply with traffic rules and maintain good safety records. Health and life insurers reward beneficiaries for not smoking and remaining physically fit.

The same approach can be used for enhancing the benefits of unemployment insurance. All OCED countries run unemployment insurance programs that provide minimum salary protection on a temporary basis for insured unemployed workers. Uniformly applied to all workers, these programs achieve a high level of coverage at very low cost, but they do little to reward the insured for adopting behaviors that can reduce or eliminate the risk of unemployment. One of the most obvious and effective measures would be to reward workers for acquisition of higher education or obtaining of certificates for enhanced vocational training. Throughout the world, unemployment is highest among unskilled workers with the lowest level of education. Providing incentives to workers or their employers for raising the educational level and expanding their skill base will raise the productivity of workers and their employers, while reducing the risks of temporary or prolonged unemployment. Already firms in the USA with high unemployment rates pay more for insurance cover. The same approach can be applied to vary the rates of insurance according to the educational and skill levels of the workforce and to offer reduced insurance premiums or even negative premiums to workers and their employers who upgrade their educational and skill base.

At a superficial glance it appears that unemployment punishes mainly the individual concerned. But a closer and deeper look will reveal that the penalties are more pervasive and are spread far and wide. Lower overall consumer spending, higher drug addiction rates, greater incidence of criminal behaviour,  more unwed mothers on welfare are all associated with the higher levels of unemployment among those with less than high school education. Awareness of the high cost of unemployment is reflected in actions governments have been willing to take to reduce it. During the recent recession the USA government spent $159 billion to create or temporarily preserve 640,000 American jobs. That works out to a cost of $250,000 per job. With an investment of perhaps 10% of this amount per job, the uneducated and unskilled can be permanently qualified for higher level jobs.

Variable insurance rates can be used to reward employers who take progressive measures. It can also be used to recover a tiny portion of the public expenditure made on those at the higher ends of the job market who have most benefitted by the nation’s educational infrastructure by raising the premium for employees who earn higher salaries.

India is very much alive to this issue and has taken a constructive approach that fits her own domestic scene. She is spending $8 billion per year to offer jobs to some 55 million workers  under the National Rural Employment Guarantee Scheme. This works out to $400 per person per year. The program not only addresses the needs of Indian’s poorest. It also acts as an economic multiplier to stimulate the rural economy while developing critical rural infrastructure needed to support economic development. Such programs mitigate rural poverty and also accelerate development by enhancing rural infrastructures necessary for development.