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The President of the USA could end unemployment tomorrow with an Executive Order
Finally a permanent employment and consumption solution!
Paul Katchings
All Rights Reserved July 2, 2009

In the complex economic world of mixed religious, political and economic philosophies that we find ourselves in now, we need simplicity and an universally accepted employment standard to take ourselves off of the debt driven consumption model which causes unemployment.

A spinning top requires three things to spin. The top, the one causing the top to spin, and the surface that the top is spinning on.

The solution to universal employment and consumption should be as simple as a spinning top to implement. It is clear that we have a global economic crisis. It is clear that labor units able to work cannot find work. Therefore labor units cannot buy things, consume because they do not have money from working.

So what are the solutions to these two problems of unemployment and consumption?

The two solutions are intertwined because the consumption function in economics is tied to income. We must examine and provide the solutions separately for permanent employment and permanent consumption and then recombined the two solutions for a ‘spinning’ end-to-end solution.

We use the USA economic system as the basis for the universal solution to end unemployment and a permanent debt free consumption model.

The full employment labor solution requires a flexible labor policy to go along with a flexible fiscal policy and a flexible monetary policy, actually if we do not have a flexible labor policy then we do not have a functional fiscal and monetary policy. So the fiscal and monetary policies are functions of a flexible labor policy.

So what is a flexible labor policy solving unemployment?

One observation about jobs that has been left out of the economic discussions over the years is the government-mandated time of the workweek at eight hours in the US and in many parts of the globe following the US standard. The questions are many but primarily who, or what were the scientific bases for setting the workweek at eight hours?

The US Federal Government mandates the eight-hour day and forty-hour workweek labor contract for the labor units without the minute examination of the consequences.   The flaw in the inflexibility of these work hours [labor contract] and forty-hour workweek design hampers the consumers and producers, preventing the “monetary and fiscal policy” flexibilities to function properly in causing permanent 100% employment and sustained debt free consumption.

A new flexible labor policy means dropping the mandated workweek to ‘0’ hours and then builds the model from the ground up.

For example a 15% reduction in the mandated 8-hour workday to 6.8 hours produces an instant -2% employment rate in the US instantly absorbing the 11,159,999 unemployed and creating a labor shortage of 3.22 million labor units.

The President of the USA could end unemployment tomorrow with an Executive Order.

More consumption will result from this new flexible labor policy but not necessarily to previous levels, and not by debt driven demand consumption as part of the two-prong solution.

This flexible labor policy example instantly solves the 100% employment problem.

Next we need three pieces of data to solve the debt driven consumption problem for the USA and the globe.

The three pieces of data are the population of the USA, the gross domestic product number, and the value of the US stock market.

Please click here to continue… www.productequityvalue.info/index.php?op...
 

Why the Capitalist Theory is no longer fundamentally flawed
The death of credit, debt, boon-bust cycles and unemployment
By Paul Katchings All Rights Reserved Wednesday, May 20, 2009

The capitalist theory was fundamentally flawed because of an incomplete understanding of the exact meaning of ‘capital’. This inexact meaning of capital is what causes credit, debt, interest, boom-bust cycles, unemployment, and poverty.

The concepts of  credit, debt, and interest are the negative components of capitalism and it can now be argued that these three concepts are not actually part of the concept capitalism or at the minimal not the dominate parts in view of an elevated knowledge of capital; and equity.

According to a new study capitalism is greater than even the capitalist with their current limited understanding ever imagined for the elimination of economic inequalities. Essentially the duel concepts of capital  and the consumption function in economics are intertwined.