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Re: Fixing U.S. Economy

Because Zarf made me move it.

Actually, the unemployment problem in the U.S. has to do with both structural and surplus unemployment.

Structural unemployment means that there is a mis-match between skills and availability. As the U.S economy has become more service orientated, the labor force has failed to adapt. This means that while there are jobs available, employers are having difficulty filling them with qualified people.

Related to our structural unemployment problem is our surplus unemployment problem. As a result of unions and labor laws (e.g. minimum wage and equal pay laws), unskilled workers are unable to negotiate their labor for less compensation.

Finally, our welfare laws create perverse incentives by punishing the poor who find work. The result is that the poor will try to maximize their welfare payments before they look for work.


So how to fix the U.S. economy?

1. Remove the laws that exempt unions as conspiracies to restrict trade, and then prosecute them for violating the Sherman Anti-Trust Act.
2. Overturn labor laws that set a minimum wage and restrict discrimination.
3. Overturn consumer protection laws that can be corrected with the flow of information and consumer vigilance ("buyer's beware").
4. Increase the supply of universities, relax general education requirements, and distribute student financial aid on a meritocratic basis.

These are very good short-term and long-term suggestions.

Now my extreme suggestions:

1. Privatize retirement and health care.
2. Create a flat tax (15%?) on all income over $30,000, allow no deductions, and eliminate corporate taxes.
3. Update the law books, and require old laws to be overturned when they are invalidated by new laws.
4. Simplify the laws. Make them easily understandable by anyone with a High School education.
5. Reduce military spending to ~300 billion.
6. Tort reform.

If we did these things right, then life in the U.S. would be improving.

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Re: Fixing U.S. Economy

I like my consumer protection laws and rather not live in the Jungle.

Brother Simon, Keeper of Ages, Defender of Faith.
~ ☭ Fokker

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Re: Fixing U.S. Economy

You don't have to live in the jungle. You can go online and read product reviews.

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Re: Fixing U.S. Economy

You're gonna have to be more specific on what laws exactly you're talking about.
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You talk as if online reviews are absolute and the end all. If I buy a product, it better come as advertised. A 'good' review doesn't absovle the manufacturer/retailer of providing a defective product.

Brother Simon, Keeper of Ages, Defender of Faith.
~ ☭ Fokker

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Re: Fixing U.S. Economy

For example, the price of childcare has skyrocketed in some areas because the state or municipal governments imposed licensing requirements that effectively create a barrier to entry. It is also unnecessary. It's the fault of parents if they don't do their research.

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Re: Fixing U.S. Economy

childcare as in pediatricians or (pre) schools?

Presumably such a licensing scheme establishes a basal quality that guarantees a certain level of care should you choose it. Nothing wrong with quality care. As for cost, you have to see why it is going up. Does the license require a fee that the care provider then passes on to the consumers? Do providers increase cost simply because they can, perhaps as a result of fewer providers due to government inefficiency in approving licenses? There are different ways to address a problem, but first you have to identify the problem. Failure to provide consumer confidence is not the responsible solution.

In a sense, your asking consumers to do research is for confidence. Consumer A reads Establishment B has good reviews, becomes confident of B's quality and therefore brings his business there. What you fail to realize is that in order for A to research such a review, such a review has to exist in the first place. This means a Consumer Z has to have gone to B and write the review. Who is going to guarantee B's quality to Z? Would you risk your child's well being? No? Then why would Z go to B when Establishment D has good reviews? Essentially, in your world, by shifting responsibility to the consumer, you've created an even worse (in my opinion) entry barrier.

Brother Simon, Keeper of Ages, Defender of Faith.
~ ☭ Fokker

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Re: Fixing U.S. Economy

just take the pharmaceutical company's word for it! gosh, there's no trust in this world anymore!!

So I told the cop, "No YOU'RE driving under the influence... of being a JERK!"

http://www.youtube.com/watch?v=eFjjO_lhf9c

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8 Reply by Justinian I (edited by Justinian I 07-Oct-2012 04:51:27)

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Re: Fixing U.S. Economy

Simon,

I'm not talking about education or health care providers for young children. I'm talking about a provider who is paid to supervise a child while his/her parents are working.

While I can understand your point about consumer reviews creating a barrier to entry for those who aren't established, newcomers can at least compete by compensating parents with lower prices and thus keep the cost of childcare down. When the government creates licensing requirements, then prices go up due to less competition and higher entry costs.

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Re: Fixing U.S. Economy

>> newcomers can at least compete by compensating parents with lower prices and thus keep the cost of childcare down.

Highly unlikely. In your society, anything bad that happens is the fault of the parents. Why would parents risk their children's well-being even if it's cheaper?

>> When the government creates licensing requirements, then prices go up due to less competition and higher entry costs.

I already addressed that in my earlier post #6. In the absence of any more details it's hard to say why.

Brother Simon, Keeper of Ages, Defender of Faith.
~ ☭ Fokker

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