Wednesday, April 14, 2010

Obama’s Secret to reduction in Unemployment and Re-election
Hatched in Health Care Reform, Republicans become fans.

Obama’s secret key to reducing U.S. unemployment by 2012 is seen in the Health Care Reform bill. Though the capitalistic loving Republicans point at the socialistic malaise of Health Care Reform, the simply job creation ability of this program is enough to shut their mouths in short order as they look to relief of the unemployed as the harbinger of their own political triumph soon.

For a quick review of Public Work Projects created by the Government during the depression years consider:
Franklin D. Roosevelt became the United States President in 1933. He promised a "New Deal" under which the government would intervene to reduce unemployment by work-creation schemes such as painting of the post offices and street cleaning. Both agriculture and industry were supported by policies to limit output and increase prices. The Great Depression ended as nations augmented their production of war materials at the beginning of World War II. This increased production provided jobs and put considerable amounts of money back into circulation. In Germany Hitler developed a massive work-creation scheme that had largely removed unemployment by 1936. Rearmament, paid for by government borrowing, started in a major way. In order to control inflation, consumption was restricted by rationing and trade controls. By 1939 the Germans’ Gross National Product was 51 per cent higher than in 1929 which was due mainly to the manufacture of machinery and armaments.

United States

The first large scale job creation programs in the United States were introduced as part of the New Deal during the Great Depression. Departments like the Civil Works Administration, Public Works Administration, Civilian Conservation Corps and most prominently the Works Progress Administration created thousands of jobs for the unemployed.

Here is another list of significant projects that orchestrated by the Government to create jobs you might be familiar with.
• Human Genome Project which mapped the human genome
• Manhattan Project, which developed the first nuclear weapon
• Polaris missile project: an ICBM control-system
• Project Apollo, which landed humans on the moon
• Soviet atomic bomb project
• Soviet manned lunar projects and programs

Public Works Administration

• The Federal Emergency Administration of Public Works, created by Title II in the National Industrial Recovery Act of June 1933, became the first national peacetime effort to create jobs. Eventually known as the Public Works Administration (PWA), this New Deal program spent over $6 billion to shore up the nation's infrastructure while combating unemployment. Under Secretary of the Interior Harold Ickes's direction, the PWA constructed or refurbished highways, dams, low-cost housing, airports, warships, and other public projects. States and municipalities provided supervision in some cases, but all had to respect PWA guidelines. No PWA projects could use convict labor or work employees more than thirty hours a week. Congress required that human labor be used "in lieu of machinery whenever practicable" to maximize employment. By the close of 1933, thirteen thousand federal projects and twenty-five hundred locally supervised projects were under way.

• The PWA earned a near spotless reputation for good management, and Ickes used every avenue to guarantee Afro-Americans their share of positions at all levels. Critics, however, complained that Ickes planned too cautiously, thereby delaying projects and new jobs.

Public Works Administration

• U.S. government agency (1933 – 39). It was established as part of the New Deal to reduce unemployment through the construction of highways and public buildings. Authorized by the National Industrial Recovery Act (1933) and administered by Harold Ickes, it spent about $4 billion to build schools, courthouses, city halls, public-health facilities, and roads, bridges, dams, and subways. It was gradually dismantled as the country moved to a military-industrial economy during World War II.

The dangers in this may be the “Take Home Pay” for Health Care Reform employed. If the “Take Home Pay” is of a greater incentive then the private industry then this government incentive program will reign supreme. The Take Home Tax of 3.4% is an enormous amount and will provide the Government with an instant employment ability that could compete perilously with the private sector, effectually putting the top notch doctors out of business, or worse enrolling them into a wage controlled paradigm shift and control by Government appropriation and in the name of the “public good.

This is why in my own Health Care incentive program, I kept the Government sponsored Health Care inferior to Private Health care, similar to Public Works Projects of the Great Depression who wanted to put people to work, but didn’t want to interfere with them taking a job in the private sector.

With the following keys similar to say a Cosmetology School needing hair clients and providing hair cuts at a reduced cost but everyone knows they are not graduates and the hair cut might be subject to less than professional cut. Well, you still get your hair cut, and you may have to stand in a line, or you may not have any control of which hair stylist you get… but the Professional Cosmetologists are not threatened by the schools.

1- Enlist student or Graduate doctors and trainees as the subsidized workforce in the program for a period of time, maybe 1- 2 years after they graduate.
This could be a benefit for Doctors who didn’t have enough money to start up their own private practice and wanted to keep up in their field, even as a part time status.

2- Provide incentives for the student doctors in subsidizing internment programs as ways to reduce school loans.

3- This could be implemented in every position , from clerical to nursing.
This could be implemented in any field and every medical field. I think the employment benefits could be equally substantial. While supplying a service for those less fortunate it would reduce the burden on emergency room expert professionals, provide basic care, and would be less expensive to insure from the insurance perspective.

This could be implemented without a ‘round-up’ or forced entry into any public option and could be implemented on the coat tails of emergency rooms to public hospitals infrastructure and I think it could be implemented without raising taxes with the money saved in the Professional expert Arena while at the same time protecting the private sector.

While the Government interference is detested, Government assistance is often appreciated in dire circumstances as in a depression. The key being the Government’s willingness to take a back seat to the Private Sector, providing a positive incentive for the Private Sector. The idea of “something” being better then ‘nothing’ and not coming close to “everything” has merit in a balance of justice.

Without this kind of a frame work, I’m afraid Government has the keys to a host of detail they have no business in regulating in our private medical care, and the keys are given to them in a forced regulation of the health care professionals income which they will undoubtedly begin regulating.

This will also provide the Government control of political circulation or donations of currency. Ultimately those who have money, who could resist in donations to say an alternative candidate for any office, would be stripped of their ability to make a difference with their income affectively putting the rich in a poor man’s line.

Report prepared by:
Cody Robert Judy
United States Senate UT. 2010

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