U.S. Should Try Germany’s Unemployment Medicine: Kevin Hassett
Commentary by Kevin Hassett - November 8, 2009 21:00 EST
Nov. 9 (Bloomberg) — As the U.S. unemployment rate surged to 10.2 percent in October, economists scratched their heads and puzzled over the job-creation failure of the biggest stimulus package in the nation’s history. Across the Atlantic in Germany, policy makers were high-fiving as their unemployment rate unexpectedly ticked lower for a second time after peaking at 8.3 percent in June and July.
While economic differences can be difficult to explain, the remarkable resilience of the German labor market is clearly and directly attributable to a specific economic policy. German policy makers have been innovative and clever. The Germans have discovered a secret medicine that can cure unemployment, or at least minimize its spread. Americans would do well to take some.
The policy in question is called “Kurzarbeit,” which translates approximately as “short work.” Firms that face a temporary decrease in demand avoid shedding employees by cutting hours instead. If hours and wages are reduced by 10 percent or more, the government pays workers 60 percent of their lost salary. This encourages firms to use across-the-board reductions of hours instead of layoffs.
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When my sister and I decided to read The Fault in Our Stars as a type of two person book club (we call it ‘tandem reading’), I thought I should invite our mother to join us. She has a close friend who recently survived a particularly harsh battle with cancer. She mostly reads books in the vein of ‘whodunnit’ or ‘who’sthefatherofmybaby’. And she does not like to talk about her own emotions or other heavy topics.
So I figured, knowing John Green, that the best thing that could come of this would be some great ‘gateway conversations’, and the worst would be that she would be forever traumatized. (Results were good!)
My sister loaded my mom up with the rest of Mr. Green’s novels.
This is the email I received this morning, subject line: Damn John Green!
“I started “Looking for Alaska” last night. When I closed the book at 10, I thought what a great book!
This morning I was not liking you brats at all for recommending this book when I discovered that the countdown of days was indeed leading to something sad. However, after finishing it a mere 30 minutes ago, looking out over the lake for awhile, then re-reading the last few pages, I am no longer mad at you and will probably find myself reading the last pages over a couple more times.”
World suck decreased, awesome increased. Mother emoting and reading critically like a pro. I should show her Tumblr.
Seems like this is a very common sentiment. I would turn my mind to this topic more, but it HURTS!
(Source: thefingerfucker, via tea-in-west-egg)
