The best way to reduce joblessness is to make work pay more, for employees and employers, by reducing the implicit tax on employment generated by social-welfare policies like disability insurance and SNAP payments, which discourage work because benefits get cut when an individual exceeds a certain threshold of earned income; and by expanding policies like the Earned Income Tax Credit, which subsidizes working.
The need to make work pay more is particularly acute in the eastern heartland, so we could subsidize work more in that region.
Industrial capital and Rust Belt capital moved to the warmer, more pro-business Sun Belt.
In particular, we can structure our social policies to fight joblessness more aggressively where joblessness is most severe.
The most simple and direct way to fight joblessness is to make work pay more, both for individual workers and for employers, and to reduce the implicit tax on employment generated by social programs.
A social-insurance program that pays an individual $10,000 per year as long as he doesn't work will do little to deter employment in Santa Clara County, California, where 74 percent of households earn more than $50,000 and the unemployment rate is just 3.2 percent-but it will have a major impact in Martin County, Kentucky, where 74 percent of households earn less than $50,000 and such a low percentage of adults over age 16 are employed.
If we make the subsidies particularly strong in distressed areas, employers will be focused on providing employment in those areas, where joblessness, responds more to extra labor demand.
https://www.city-journal.org/revive-rust-belt
The need to make work pay more is particularly acute in the eastern heartland, so we could subsidize work more in that region.
Industrial capital and Rust Belt capital moved to the warmer, more pro-business Sun Belt.
In particular, we can structure our social policies to fight joblessness more aggressively where joblessness is most severe.
The most simple and direct way to fight joblessness is to make work pay more, both for individual workers and for employers, and to reduce the implicit tax on employment generated by social programs.
A social-insurance program that pays an individual $10,000 per year as long as he doesn't work will do little to deter employment in Santa Clara County, California, where 74 percent of households earn more than $50,000 and the unemployment rate is just 3.2 percent-but it will have a major impact in Martin County, Kentucky, where 74 percent of households earn less than $50,000 and such a low percentage of adults over age 16 are employed.
If we make the subsidies particularly strong in distressed areas, employers will be focused on providing employment in those areas, where joblessness, responds more to extra labor demand.
https://www.city-journal.org/revive-rust-belt
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