Friday, August 29, 2014
   
Text Size

Search our Site or Google

Structural Unemployment for “Dummies”

Articles & Blogs - Canadian Commentary

User Rating: / 18
PoorBest 

Let me preface this piece by first telling readers that the “dummies” to whom this commentary is addressed are not yourselves. Nor am I trying to infringe on anyone’s trademark. No, the “dummies” to whom this piece is dedicated are our “leaders” and our “experts”.

It is frustrating to the point of madness to see media talking-heads parrot the phrase “structural unemployment” over and over again while quoting these illustrious individuals, and yet not one of them has the tiniest clue as to the actual meaning of the term. The fact that this situation persists despite having covered this topic several times in my own writing demonstrates one of two possibilities (perhaps both?). Either global leaders and market experts are not (yet) subscribers of my work, or, they read it but couldn’t understand it.

This piece is dedicated to explaining the concept of structural unemployment in such painful simplicity that each and every person who reads it will, in turn, be able to explain it to our esteemed leaders and experts.

No treatise for “dummies” would be complete without starting with a simple definition. In the case of “structural unemployment”, the definition is the epitome of simplicity: structural unemployment is unemployment caused by a faulty structure of the labour market. Before my critics accuse me of circular reasoning, or simply semantics, let me defend myself.

With any simple term, we cannot define it without encountering the trap of needing to define it in terms of itself – or simply borrow a close synonym, and do the same thing. Thus, anyone trying to define “big” would inevitably find themselves forced to use terms like “large”, or “greater than”, and be subject to identical criticisms.

With a term like structural unemployment, which is literally self-explanatory, we cannot possibly create a definition which does not involve “a problem with structure”. Such a definition may seem pointless, and yet even this simple step is beyond our leaders and experts.

Consider this: we know what that none of these charlatans are capable of understanding the definition of structural unemployment any/every time we hear one of them attempt to formulate a “solution”. These exercises in ineptitude fall into two categories: “job retraining” and/or “improving economic performance”.

With respect to defining structural unemployment, let’s take one more step down our road of simplicity. When I say that our labour markets have “faulty structures”, we can instantly identify the precise nature of that structural problem (by definition): our economies are now structured to provide far too few jobs in comparison to the total number of workers. This may also seem maddeningly self-evident, but it too is beyond the grasp of the leaders and experts.

In an economy which, in absolute terms, simply produces far too few jobs, job-retraining by itself is nearly irrelevant. When you shuffle a deck of cards, you haven’t “restructured” that deck, in any meaningful sense. All you have done is changed the order, with respect to which cards come to the top of the deck first.

It does no good to simply “retrain” large numbers of workers when (for the most part) pushing one of these “retrained” workers back into the job market merely takes away the job of a current worker (who then goes to “the discard pile”). If we are not doing something to radically increase the total number of jobs then we are merely pretending to address the problem (something at which our “leaders” excel).

Equally idiotic are those “experts” who claim that improved economic performance can solve our problems. Again, I fall back on simple definitions. “Improving economic performance” is a cyclical change. We can “improve the economy” for a while (exclusively by piling more debt onto our economies), but that is only a solution for “cyclical unemployment”.

The entire reason that our leaders and experts put the word “structural” in front of the word “unemployment” is that this is not cyclical unemployment. By definition, this is unemployment which can never be solved through a cyclical up-cycle.

Up to this point, I have defined what “structural unemployment” is, what it is not, and how not to fix it. With three quarters of my task accomplished, this only leaves me with the solution. In keeping with the theme, my solution is the epitome of simplicity: we need to re-structure our labour markets.

This time critics could rightfully accuse me of circular reasoning, and semantics – if not for one point: we already have 200 years of economic history which tells us exactly how to re-structure our labour markets. We must reduce the length of the work week.

I can already hear the clamor from business leaders and right-wing (i.e. brain-dead) economists: “it won’t work”, “it’s too expensive”. I don’t even have to be psychic to know exactly what they will they say, because it’s exactly what business leaders and right-wing economists were saying two hundred years ago, when the “standard work-week” was seven days a week, twelve hours a day – or roughly 80 hours per week, and our economies were suffering from (you guessed it) “structural unemployment”.

And decades later, when it was proposed that we go from a 70-hour work week to a 60-hour work week, these enlightened pundits said exactly the same thing. And decades later, when we went from a 60-hour week to a 50-hour week, these rocket scientists made the same predictions. And decades later, when we went from a 50-hour week to a 40-hour these intellectual titans boldly made the same prediction. Now, today, decades later than we should have made the change to a four-day work week, I am proposing that we follow a 200-year old “formula” – and yet I am utterly alone in the Western world.

Keeping their two hundred year-old “perfect record” intact, we can count on every business leader and right-wing economist to tell us that moving to a four-day work week (which would increase total job positions in our labour markets by more than 20% after factoring in the “multiplier effect”) is “too expensive” and “will not work”.

For those of you who actually manage to corner one of these evasive “leaders” or “experts”, and who decide to try to explain structural unemployment to them (along with its solution), here are three skill-testing questions. Asking these three questions of the leader or expert present will allow you to determine whether to take the time to complete your explanation, or whether you could use your time more productively by explaining it to your “pet rock”.

1) Keeping in mind that the last change in the work week was more than a half century ago, did the previous reductions in the work week make our economies stronger or weaker?

If your target isn’t aware that our prosperity and our standard of living got somewhat better between 1800 and 1950, talk to your rock.

2) Do you have a better idea to fix structural unemployment?

As I explained before, if your target even opens his mouth to try to answer that question, talk to the rock.

3) Can you count backwards from seven down to four?

We must recognize the distinct possibility that these “leaders” and “experts” are simply not capable of the “arithmetic” necessary to go from a five-day work week to a four-day work week. If your target gets stuck at “five”, talk to the rock.

 

Trackback(0)
Comments (3)Add Comment
Jeff Nielson
...
written by Jeff Nielson, December 28, 2010
I'm going to do an entirely separate reply on "pay", since that is an issue that most people would focus upon (LOL!).

To begin with, yes, EVERYONE takes a 20% pay cut. They ALSO get a BIG tax-break, because with 20% more people with jobs, that means 20% more paying taxes - so EVERYONE gets a big tax-cut.

Second, as mentioned above, working less hours should make employees MORE productive (based upon existing empirical evidence). More "productive" employees (and I'm talking about REAL "productivity") translates into a PAY RAISE - based on this efficiency alone.

However, with 20% more people suddenly taking home paycheques, this is a HUGE stimulus for the economy (which doesn't cost one PENNY). So any/every business which relies upon domestic consumption will suddenly become much more profitable - and that should produce ANOTHER pay raise for employees.

Eventually, you get the same thing happening which occurred after all the OTHER reductions in the work week: people work LESS hours, but end up making MORE than before.

The problem: our governments don't WANT "employees", they only want slaves - and thus keeping us poor and oppressed is PREFERABLE to making our economies efficient and prosperous.
Jeff Nielson
...
written by Jeff Nielson, December 28, 2010
Yes, Redrob, this is DEFINITELY a product of technological advancement. Simply, technology ALWAYS eliminates jobs much faster than it creates new employment opportunities - hence the steady progression from 7 days a week/12 hours a day to 5 days a week/8 hours a day. I usually include that when I cover this topic, but wanted to keep it a little simpler this time.

I should also note that there has NEVER been anything "optimal" about working EITHER 5 days or 40 hours in a week.

Employees have been shown to INCREASE productivity if they work fewer than 40 hours. And as for the "five day" week, how idiotic is it that most of the valuable infrastructure in our society sits idle for roughly 30% of every year.

If we go to a four-day week, we could invent a new "semi full-time" status for people who work three days a week - and begin to use our infrastructure on a SEVEN DAY A WEEK basis.

This is just a few of the economic efficiencies available to us through shortening the work week.
redrob25
...
written by redrob25, December 28, 2010
Jeff,

Do you think that the shrinking work week is a product of technological advancement and deflation, or of a flawed economic system that cannot sustain itself which forces people to reduce their standard of living through reduced work schedules.

I would assume that shorter work weeks mean less pay as well. We would be bequeathing 20% of our pay to employ the rest. Unless, technological advancement and natural deflation has caused our standard of living to rise so much as to allow us to work less and leisure more.

Given our debt-based society which has increased our appearance of prosperity while putting claims on future labor, it is very hard to estimate how much impact technological advancement and natural deflation has impacted our lives.

It seems we only have anecdotal ways in which to separate technological advancement and ensuing natural deflation, and the inflating and distortive effects of a fiat based economy.

Write comment
You must be logged in to post a comment. Please register if you do not have an account yet.

busy

Latest Commentary

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12

Latest Comments

Disclaimer:

BullionBullsCanada.com is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

Login Form

buying chloramphenicol for dogs nolva pct after anavar donde comprar un tricornio how long does it take for augmentin duo forte to work vardenafil hcl 20mg doctor confido generic wikipedia drugs mail order lamictal online penegra uses medication vantin online cheap prometrium pills during pregnancy coreg price usa generic renova cream purchase cymbalta lowest price purinethol side effects long term use buy prednisone online pharmacy sildeafil citrate india buy elimite paypal accepted genuine alesse 100mg side effects of celexa 30 mg ephedraxin comprar florida norvasc rhinocort max dose is it legal to buy medicine online from canada alternatives to flomax drug can you buy tadacip in ireland generic cialis purchase zebeta best place buy lozol pct vermox online pharmacy buy zanaflex boots pharmacy healthyman viagra buy cytotec tablets online retin-a 0,05 dosage instructions wellbutrin xl maximum daily dose nitrofurantoin prix en pharmacie en france order pills from canada what is adderall abuse i pill bentyl website zithromax pet medication buy depakote next day antabuse pharmacy mail order buy acivir pills generic what is toradol injection used for average cost of metformin without insurance cost of generic 5mg cialis discount vermox online click here nike wmns air max 1 leopard charcoal sail i pill lipitor website atorvastatin canada drugs levothroid with prescription celebrex pharmacy costs zithromax 40 mg ml annostus where do i buy fertomid mail order generic eldepryl buspar anxiety medication nizoral pills usage alli pills in stock uk uk pharmacies online that sell topamax biaxin xl shelf life order birth control online planned parenthood aciclovir tablets weight gain metronidazole flagyl dose nolvadex tablets pakistan buy desyrel usa cleocin gel without script anti anxiety medication online no prescription norstan isoniazid tablets online indian pharmacy no prescription buy depakote online cheap fenofibrate dose comparison claritin with no rx discount buy cephalexin for dogs what is actonel best price for amantadine buy clomid online without prescriptions anti nausea zofran side effects prevacid pills 100 mg depakote places to get the morning after pill free overnight buy online astelin without micardis without prescription medication best cialis soft prices pharmacy online pill where can i get viagra in dubai mexican pharmacy no prescription orlistat prednisone side effects 40 mg daily is generic dilantin safe what does cephalexin for dogs look like ordering low dose anacin buy diovan hct from canada buy generic medrol online antabuse common side effects new allies transport ltd warmley lipitor perth australia purchase zofran cheap effects of viagra side effects of long term use of entocort fastest maxaman uk delivery no rx sinemet online get wellbutrin sr toronto disfuncion erectil tratamiento gratis effects of too high dosage of synthroid viagra and alcohol abuse order eulexin medication by mail teva-glyburide 2.5 mg can you drink alcohol with motilium buy trileptal online in usa voltaren gel 1 cost promethazine 100mg cheap tinidazole half life where purchase alphagan lopressor pas cher italie 100 mg biaxin viagra on line sales mestinon women buy side effects of azithromycin and alcohol generic robaxin image order erythromycin generic mail order medications canada buy generic viagra south africa generic pletal no prescription yasmin canada overnight delivery augmentin es coupons dapoxetine no prescription donde puedo comprar cytotec en venezuela buy amaryl usa cytotec tablet price in india korean ginseng 1000mg can you buy benzaclin over the counter can i bring viagra from mexico inderal sold over counter anafranil 10 mg ne ic,in kullan?l?r gabapentin 100mg diovan com espanol clorfenamina compuesta alcohol buy online uroxatral generic most reliable place to buy prazosin online buy famvir visa indian generics online beconase aq can i get sleeping pills without doctors prescription what symptoms does singulair help current price maxalt aciclovir sublingual dosage ordering levitra mexico ventolin evohaler for sale hyaluronic acid over the counter cleocin pill shop discount code acyclovir 800 mg overnight nexium uk sale buy generic betapace canadian alliance of dance artists ontario chitty buy levothyroxine 15 mcg uk how to use benzac ac 10 tadalafil dove comprare eurax lotion cost cheap buy zyprexa prescription compazine without a script fedex next day zovirax capsules dosage cefadroxil monohydrate 500 mg artane dose for dystonia van you buy lotrisone canadian buy isoptin next day desyrel 150 mg tablet cheapest astelin to buy bismuth iii citrate solubility maxalt patient reviews cardizem without script imiquimod cream buy how long does keflex take to work for acne methylprednisolone acetate manufacturers accutane over the counter india buy cheap all rights reserved generic allopurinol buy alli online india drugs femara dosage for gyno didronel sold over counter when to stop prometrium during pregnancy cardura xl maximum dose prednisone no prescription online mastercard med cab female viagra non prescription pyridium pharmacy ortho tri-cyclen sale diflucan doctors online delivery topic buy premarin fluoxetine overnight zetia by mail buy cialis canada online most reliable place to buy diamox online online viagra canada review levlen refills best place to order tamoxifen in us order buy cheap altace order motrin 500 mg eulexin pill shortage generic cialis super active (tadalafil) cheap generic venlor overnight generic name for lithium carbonate what is brand advair diskus drugs uk pharmacies online that sell actoplus met effexor price no rx plendil online calan on line no script buy cheap asacol using pay pal what is crestor mg used to treat is generic arava available in usa buy toprol xl quick comprar effexor xr pela internet us pharmacies online that sell evista amoxil rx list pharmacy that sells avalide india malegra fxt price bystolic competition albendazole fda approved to buy without prescription malegra dxt legal in england viagra las vegas isoptin drugstore.com lasix iv shortage blue lotus pills side effects kamagra chewable refills cheap doxycycline monohydrate viagra professional drugstore where to buy cheap generic compazine canadian alliance of physiotherapy regulators capricorn order levothroid canada exelon on line no script diovan 80mg tablets what works best levitra or viagra doxycycline generic vibramycin is generic zyvox effective tofranil reviews and dosage generic serpina in usa generic shuddha guggulu tesco home insurance alternatives to avodart and flomax discount motrin of canada lady era pharmacy order cytoxan buy canada best way to get high off pills does fucidin cream treat impetigo cialis jelly online forum what kind of medicine is requip bactroban what is it for diakof pas cher can you buy cialis soft in ireland canadian generico cost of levaquin 500 mg oral jelly for sale cheapest kamagra cheap calan bosch holidays minipress generic cheap costs what is the dosage for levaquin price increase antabuse cytotec perth australia acquistare tenormin in italia xenical diet pill without prescription side effects of cipro in the elderly arimidex uk online overnight pharmacy viagra jelly zyrtec online australia canadian pharmacy cialis and viagra blopress pas cher dapoxetine ordering online pharmacy zanaflex shelf life is a prescription required for metformin no prescription accutane buy accutane 10mg online lasix shortage 2012 cialis from india online zofran wafers dose children order tenormin online lexapro online india best generic doxycycline review cardizem for sale online can you buy antidepressants in thailand seroquel best prices buying alli tablets comprar chloromycetin portugal plendil discounts codes where can i buy promethazine with codeine cough syrup cordarone for sale philippines brahmi capsules reviews buy viagra professional greece generic zerit us can buy menosan online generic glucophage metformin para comprar cialis necesito receta medica female cialis order where can i purchase aygestin order erection packs 2 from products brand xeloda buy beconase aq lawsuit canada diovan 80 mg sale risperdal consta 25 mg price fish medications for humans zyprexa dosering cheap lopressor sale uk buy dostinex online in usa periactin syrup for children triamterene online pharmacy buy florinef for daily use best place to buy zantac online latest new alli antivert delivery pharmacy can you take paroxetine daily where to buy lasix furosemide mexican stromectol bupropion sr missed dose liquid thyroid medication for dogs where can i buy viagra online in india best price midamor prilosec mexico generic plavix prescription drug coumadin buy ralista online pharmacy elavil where to purchase generic estrace pills benicar annual sales daiichi zetia 100mg cheep buy carafate in uk overnight delivery cialis ephedra diet pills gnc buy pilex visa fasigyn (tinidazole) 500mg generic aldara imiquimod buy ampicillin online lowest prices mirtazapine generic for remeron pletal next day delivery order compazine no prescription lithium battery cr2025 discount code for levitra super active tamoxifen 10 mg pct where can i buy alligator clips for hair bows bulk buy wellbutrin sr online no prescription usa augmentin dosage 1g buying diovan for dogs is propecia prescription only can you get pariet over the counter can drink alcohol while zithromax eulexin usa sale does oily skin come back after accutane getting lopid in australia online prescriptions in australia does generic viagra work unisom sleep tabs uk nitrofurantoin order on web canadian pharmacy exams forum cheap decadron no prescription blopress medication online nitroglycerin stanford university school of medicine levitra online kaufen ohne rezept american brahmins order cipro online no script canadian lisinopril 20 mg not working actavis tretinoin cream usp 0.025 symptoms of asthma attack in children order alliance wow leveling guide pariet online coupon code lasix reviews for men worldwide pharmacy albenza navarro discount pharmacy coupons arava over counter cheap kamagra uk paypal baclofen cost walmart canada rx direct why has rumalaya liniment been discontinued eldepryl overseas buy pariet hong kong best price acai powder cheap nootropil no prescription what are the side effects of taking cytotec nootropil online legally purchasing baclofen online pharmaceutical wholesalers distributors australia generic furosemide uk bactrim pills treatment why has cozaar been discontinued ditropan in the uk now singulair 10 mg tab generic female viagra discounts codes generic voltaren for sale on line ditropan coupon code online viagra cheap prescription betoptic legal in england acticin online usa no prescription where to buy entocort drugs online proscar side effects lawsuit where to buy cheap generic abilify over the counter innopran xl azulfidine supplier in uk is there a shortage of cafergot buying phenergan from canada no prescription furosemide dosage for heart failure metronidazole with out a p avodart 10 mg leukeran 2mg azulfidine price where to buy mevacor ointment buy nitrofurantoin suspension zyprexa sales 2010 purchase retin-a 0,05 atacand over the counter mobic for discount how much does depakote er cost to buy astelin asthma azelastine lisinopril prescription free zestoretic weight gain rifampin and isoniazid capsules u.s.p amaryl results forum how to use cytotec tablets for abortion cialis reviews forum erectile dysfunction zyloprim 5mg tablets is kamagra as strong as viagra acai berry shopping what is alli short for can you buy lotrisone pharmacy online cialis jelly tablets us online beat way to order sominex order lithium overnight micronase drugstore.com purchasing hytrin online uk seroquel xr price per pill buy actos prescription cheap generic generic differin in is diarex available over the counter propecia prix pharmacie paris order live lobster nova scotia buy erexor boots pharmacy generic for norvasc 5mg use diltiazem coupon online cheapest alli online what is diabecon pills used for benicar hct patient reviews cheap generic urispas cheapest place to buy glucophage online shopping sites in india for medicines lasuna shop net lipothin safe side effects of nizoral 200mg synthroid testosterone booster reviews can i buy viagra over the counter in amsterdam chloroquine buy canada order celexa canada vendita viagra originale line buy cialis 50 buy authentic viagra online lopressor suppositories buy viagra online cheap no prescription med cab ceftin what is abilify aripiprazole tablets betnovate dosage form z pack dosage 250 mg 1mg finasteride every other day positive reviews on accutane dostinex apteka online plavix coupons 2011 can you buy flovent discount fluticasone buy levitra no prescription canada how to buy zovirax online fluoxetine tablets 40mg prometrium maximum dosage tamoxifen online kaufen what drug class is cytotec best place to buy zoloft in india aspirin side effects long term use allopurinol and azathioprine ibd zyban generic 2013 drugs tramadol overdose procardia discounts codes can you order premarin clomid calculator pregnancy cheap online buy abilify generic what is eldepryl drugs pharmacy mexico singulair where to buy clozaril ointment quanto costa il dostinex pamelor without insurance differin pills buy asacol online shipping new medicine to replace coumadin prednisone for lung cancer in dogs missed strattera dose what is the din for alesse purchase cialis soft on line in uk australian pharmacies online provera online mexico order alesse medication by mail cheap lamisil once australia effectiveness of valtrex for cold sores pet pharmacy online canada clozaril with no rx mupirocin cream boots what are the side effects of the drug keppra how much dramamine to take terbinafine hydrochloride 1 fast trandate deleviery maximum daily dose of rabeprazole sodium buy robaxin with no rx what does buspar have in it lamisil usage inderal generic brand propranolol hyaluronic acid interactions medications evista discount coupon altace 10 mg cost buy claritin in india online alavert suppositories buy misa en vivo con el padre chelo pariet 10mg tablets sarafem usa sale domperidone new zealand pharmacy digoxin tablets 40mg fda approved fertility pills for men adalat medication interactions zenegra on line for sale no script order alphagan online with visa buy acivir pills paypal accepted advair diskus delivery london kamagra visa debit green mountain energy propecia buy zyvox hong kong purchase amaryllis la paz fastest vpxl uk delivery clonidine over the couter what is the drug coreg for allergy medicine during pregnancy zyrtec what is anafranil medication risperdal uses medication buy kamagra hong kong india viagra sublingual price terramycin overnight delivery side effects of hoodia pills terramycin ophthalmic ointment purchase birth control alesse generic forms levitra prezzo in farmacia italia safe ventolin buy viagra jelly without prescriptions thailand pharmacies steroids cost of tretinoin cream 0.025 what is coreg drugs nike womens air max 1 leopard pack flagyl side effects yeast infection retin-a 0,05 price use phexin coupon online buy antivert boots pharmacy when will there be a generic for aciphex where can i buy motrin indian generics online viagra plus where purchase imuran what is the generic name for zithromax can you order serevent asthma patients how to get a canadian health card cheap zestril sale uk furosemide best price where to proscar sildenafil citrate 50mg ml order advair diskus 250 50 pharmacy coumadin quando si usa nizoral dandruff shampoo coupons buy lopid online no prescription united states there difference synthroid levothyroxine brahmi 100mg cheep sale dipyridamole where can i buy cipro xr cefixime for sale usa betnovate perth australia avapro cheap price nizoral online his unique diclofenac gel generic name terramycin online australia norvasc tablets for cats levothroid on line pariet to buy in the uk without a prescription cipro coupon code american elimite where to buy voltaren gel in canada buy amitriptyline 10mg approved drugstore best online pharmacy generic oxytrol genuine proscar best price