by Nomad
Exclusive: In theory, there are practical ways to reduce unemployment. In this post we look at the long-awaited Silver Line Metro extension in Washington D.C shows to see if there can be any lessons to learn about the ways the solutions can get de-railed.
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Back in 1922, a British Labour politician by the delightful name of Frederick William Pethick-Lawrence wrote a small book named Unemployment,
in which he laid out the causes for unemployment and possible solutions. He
writes:
What is to be done about the unemployable, the lazy and inefficient workers? Punishment is the device to which large numbers of people fly when they are confronted with a human problem for which they can see no other easy solution ; and punishment sometimes active in the form of imprisonment or chastisement, and some times passive in the form of destitution, has been inflicted on bad workers all down history with the avowed object of making them into useful citizens. It has failed, as punishment usually fails, except as an expression of the vengeance of an outraged society.
Punishment and blaming the victim was not a remedy. Though millions of Americans will see their unemployment benefits run out this month, few people in their right minds think it would do anything to reduce unemployment. It is merely a irrational way to punish people asking for the minimal assistance from the government.
Among
the many points he makes, Lawrence concludes there are no easy answers to the
problem of unemployment. Preventive measures require a degree of forward thinking not found in most governments. By the time an unemployment problem becomes prevalent, it is, he says, usually too late. As
long as nations have booms and busts, there will be cycles of unemployment.
However he does suggest that when unemployment is widespread,
it should be seen as an opportunity to overhaul the infrastructure of the
country. The costs, Lawrence suggests, would "probably be borne partly by loans to be repaid out of receipts
and partly by increased taxation spread over a period of years."
In other words- gasp!- deficient spending and taxation. And so what, Lawrence says. This
kind of relief work shouldn't be considered be wasteful since it would, if
well-considered, become part of a larger investment in the nation itself. In
both the long term and short term, there would be winners.
So let's take a look at what happened in the US when this
solution was attempted. When we look at the one of the largest infrastructure
projects - the Dulles Metro Extension- in the nation - the Dulles
Metro Extension- we can make some interesting observations.
