Daniel Gross I might consider an Optimist, while he would likely view me as an Conspiracy theorist; if he thought of me at all. Here is the thing! He looks at some Hires, and think that the economy must be getting better; while I know such Hires were being done even in the midst of the worst of the Great Depression, and some percentage were even successful. A lot of economists are relatively the same as Daniel, placing great Stock in these new businesses and new Hires. I, on the other hand, know that it is the established businesses with their pessimism which cause the Unemployment. It is one of the reasons Why I dislike Government economic policy so rigorously because of the way it works. Established business, and most especially Corporations, develop a Pavlovian impulse to Unemployment, which is downright disagreeable. They have previously been granted easy Credit and vast Government Spending whenever economic conditions have turned adverse; an environment which makes Profits relatively easy to access. The Pavlovian impulse on their part consists of an raptorial slashing of Jobs whenever Profits-taking becomes hard; they knowing this is the swiftest manner to engage the easy Credit and vast Government Spending. The problem comes in the fact that restoration of Jobs is such a more difficult and longer process, than is the retention of those Jobs; there first needing to exist prime production conditions for Hiring–making the Training Costs and lower Production viable. There are many reasons to detest Government interference in the economy, and I have listed probably the worst of all.
This Post by Robert has some degree of unworkability to it, but has a direction which is outright decent in appeal. Simple outright Commands are much simpler than complex valuation systems. We would simply need a federal law which set the total full Workweek per Employee, rising under Good Times, and lowering under Bad Times. The Command must be limited in force, though, so the law should take that Businesses could simply not deduct the Wages over the stated Hours–considered as Overtime. The later reason being there are certain personnel and Job functions which are absolutely necessary to work long hours. This Plan would work much better than Tax Credits or Subsidies, and We do not even have to call it Pigovian taxation.
Paul Krugman has much better ideation with the Problem, as one should expect from a Nobel Laureate. He, though, still expresses the Concept of granting American industry Tax advantages to start re-Hiring once more, which simply reinforces the Pavlovian reflex which I mentioned in the first paragraph. What We need is a group of economists to get together to study World Labor market history, and inform which of the Solutions present the highest viability. I think mine does, simply because of its simplicity, and the ability to quickly adapt; even on a monthly basis. You can even gear it to sensible economic data, and enjoin the Governing Board regulating the Work hours to prove the necessary increase or decrease of the Workweek. lgl