The Rev. Seamus P. Finn argues in the Huffington Post in favor of acting in various ways that require corporations to be guided by ethical values. This is noble work, but it is not likely to be effective. Corporations are selfish profit machines. The drive for profits is built into the system. In the abence of legal controls that will minimize profits for particular behavior, corporations will do what competition requires.
Both the Republicans and the Democrats now praise the ability of the market and the curtailment of government spending to help our economy. But there is no reason to think that the Republican formula and the Democratic cave in will produce American jobs. In a global economy, American companies will seek cheap labor outside the country and will invest in labor saving technology. This may be good for the stck market, but it is bad for American employment. If one wants to improve our employment situation, the solution has to be balanced between the market and the government. Increasing taxes to support government programs that use American employees to rebuild American infrastructure will do more to reduce unemployment rather than leaving it in the hands of the wealthy.
The Republicans believe that the market will produce efficient gains. Even if true, there is no reason to belive that global efficiency would reduce American unemployment.
This post shows such ignorance of history and economics that it's hard to respond. But here it is:
1. Unemployment is desirable. It is what Adam and Eve had until they sinned.
2. World trade, including the international labor market, increases the wealth and well-being of Americans. We could give lots of employment to Americans doing more coal and gold mining, petroleum exploration, growing of bananas, papayas and sugar cane, but that would be idiotic. Of course, it would be sensible to increase production of those things Americans do best and then trade with Brazilians and Mexicans, for example, who are much better at growing even things like cotton, peanuts and strawberries. The problem in America nowadays is that we're systematically keeping our kids in public schools, depriving them of the STEM instruction so sorely needed for classic American invention and innovation.
3. Lamented here is that the British didn't grow their own tea and cotton, harvest furs and pelts, for chrissake, in preference to trading with their colonies. Idiotic, as well.
4. Corporations, for reasons of meeting competition, have to test the limits of what the law allows, just as taxpayers have to test the limits of tax laws in order to minimize their taxes, an activity certified by SCOTUS. Read Ayn Rand and repeat: PROFIT is GOOD. SELFISHNESS is ESSENTIAL.
5. Yes, the government could achieve 100% employment in Amerika by hiring half the people to dig holes and the other half to fill them up again. It is obvious that rate of employment is the measure of nothing essential to our national welfare. If it were, we'd stop all the breeding and make women produce something we actually needed.
6. The writer needs to explain how it is that Singapore and Hong Kong have full employment by ignoring all his advice.
Posted by: Jimbino | 07/19/2011 at 11:06 AM