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how can the goverment solve unemployment?

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11 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Lowering taxes for private companies, taxing imports so that companies that import most of their products from overseas(that use to be made here) might think about making the product here again.

  • 1 decade ago

    In order for a business to hire more people there has to be an increased demand for their products or service. If the government would cut the taxes and and stop over regulating the businesses they could encourage the companies to pass the savings on to their costumers by lowering prices . This would encourage people to start buying and the businesses would start expanding to meet the demand for their product thus creating more jobs, If they handled it right maybe some of the companies that moved to other countries might be encouraged to move back. I know that people will say that this is a dumb idea but every thing the government has tried has not worked either.

  • 1 decade ago

    In practice, it really cant.

    The government can create thousands of jobs, which just puts more strain on taxpayers and increases our national debt. Then, once the piggy bank is empty, those emergency jobs disappear and the unemployment rates go up again. Only the private sector can create real, lasting jobs that generate actual revenue. By putting tighter regulations on private businesses (such as Fannie Mae and Freddie Mac) the government actually makes the unemployment problem WORSE.

  • ?
    Lv 4
    1 decade ago

    This is a hotly-debated topic. Those who advocate for larger government (who in this political climate tend to be more liberal) usually say that the government can either stimulate the economy by directly injecting targeted funds or directly employ people, either by nationalizing private enterprises or by bringing the unemployed into the government workforce. The more fiscally conservative camp tends to advocate for the shrinking of government, saying that a non-intrusive government will lead to more business expansion, and therefore more jobs. There is evidence backing both schools of thought, as well as those that lie between the two poles.

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  • 1 decade ago

    Two ideas for you:

    1. Public works programs, like we had during the Depression. Gov't employed millions to build infrastructure, parks, roads, etc.

    2. Payroll tax holiday. By giving businesses a period of time where they don't have to pay payroll taxes, they would save about 10% in costs for each employee. This makes it more attractive to hire folks and less beneficial to lay them off.

  • 1 decade ago

    Henry K is right. You know, you wouldn't get a conclusive answer for your question. George Bernard Shaw says: If all economists were laid end to end, they would not reach a conclusion.

    A certain idea can solve a problem depending on circumstances. The probelm is finding which one is right.

  • 1 decade ago

    The simple answer is they can't. The unemployment rate is partly due to people who don't want to work, and partly due to companies not hiring. The government can't fix either of those issues.

  • Anonymous
    1 decade ago

    The government can provide stimulus money and use it for infrastructure projects. America is one of the few developed nations that doesn't

    have a high speed rail system. If the Government can convert our present gas stations to natural gas, we can probably kiss OPEC and many terrorists goodbye, or at least stop giving them our business. .

  • Anonymous
    1 decade ago

    Watch how fast the welfare cases run out to work when the benefit rug is yanked out from under them and they need crack.

  • Al B
    Lv 7
    1 decade ago

    Perhaps by giving tax incentives to companies who hire those who would otherwise be unemployed.

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