r/OutlawEconomics

How would governments employ people directly to reduce unemployment?

I think one of the biggest benefits of a Communist system is full employment. Some of the biggest problems in Western capitalistic countries are inequality, poverty, unemployment and cost of living. So the guestion is, if countries no longer need full employment, due to new technology, outsourcing or wealth concentration, could then in this case goverment spending on keeping people employed fill in the gaps for unemployment? I think the biggest problem with this would be that governments would just lose too much money and the people recieving the money would just spend it overseas causing no money multiplier, or even more money would be concentrated to just rich people.

The other part of the guestion is that if it's possible then how should it be done and how should it not be done. I dont think it's a smart idea to pay everyone to do meaningless chores like cleaning because then might aswell just let them have UBI and stay at home. I think one idea is governments, federal ones finance companies money to hire more people and the money then could only be spent on hiring. Also maybe goverments could just create new markets.

Let me know everyones thoughts on if this would work, especially for the coming AI unemployment crisis.

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u/thebbxx — 9 days ago