Since I spend my workday up to my eyeballs in the media, it’s very rare that I watch ONE News Tonight, and even rarer that I come across something I don’t already know.
Today, I managed to elude the fact that the government is considering support for a four-day week for businesses which might otherwise consider layoffs, paying (part of?) the fifth day’s income, while staff undertake training or community work. Until Tonight, that is. This seems to me an excellent idea, if it can be well-implemented. It accounts for the necessary scaling-back in production which some industries will experience, while subsidising future productivity increases to come from improving the skill base of NZ workers, which means that once the recession passes, the country will be better-positioned to hit the ground running, as it were, and enable the government to pay back the debt which will necessarily accrue from the scheme.
(As a sidebar: that a National government is even considering such a thing represents a huge change in political culture.)
There are certainly pro- and contra- arguments to this sort of scheme which I’ve not considered; as you can tell by the cartoon, I’m not unaware of the general uselessness of make-work-for-the-sake-of-making-work schemes. Friedman’s quote, on the linked site, is especially well-taken:
â€œIf all we want are jobs, we can create any number â€” for example, have people dig holes and then fill them up again, or perform other useless tasks. […] Our real objective is not just jobs but productive jobsâ€
The question is one of implementation: what would be necessary for a make-work scheme which results in productivity improvements down the line to be better than redundancy – the consequent productivity increase that brings as they try to better themselves, less the productivity drain they represent, being out of money and therefore not consuming, or on welfare?
This is a complex question, and I invite you to argue your corner. But please, I’m not interested in ideology-bound doggerel of the `OMG statist corrupt meddling communism’ sort, or its inverse – I’m not an economist, but I expect a high standard of analysis, the more formal the better.