Time for some DU research: What is the cost of unemployment vs the cost of a new CCC-style program

[ck4829]

We don't see a lot about unemployment, but I think we need to give it a very thorough examination and all the things that unemployment is connected to.

I'm thinking about:
Credit being affected
Inability to pay bills
Medical and psychological costs
Inability to afford goods and services
Relocation costs
And more

And let's compare that to the cost of an employer of last resort, a new Civilian Conservation Corps style program.

I've seen 250,000 dollars per worker. OK, we've got something. So now let's compare that to long-term unemployment.

Cost of an employer of last resort:
250,000 dollars per worker

Cost of long-term unemployment:
Being unemployed for a long period of time is equal to smoking ten packs of cigarettes a day
Wal-Mart CEO says customers are running out of money

[MineralMan]

1. That's an interesting question.

I don't know the answer. One thing's for sure, though: No CCC program is going to employ all of the unemployed, so both systems would probably exist at the same time. Ideally, unemployment will end and CCC won't be required. Ideals are rarely met, though.

[ck4829]

2. It couldn't hire all of them, no

But if the ratio of applicants to available job openings is closed a bit, that could provide a massive amount of relief to employers who want to hire.

[MineralMan]

3. Well, I'm not sure how much that would benefit society as a whole.

Yes, there would be fewer applicants for jobs, but it would also tie some to the low pay typical of government last-ditch employment programs.

Unemployment for an individual usually ends when that individual finds a job. Not always, but usually.

I'm not at all opposed to a government-run jobs program. In fact, I think it's a great idea. But it won't replace the unemployment insurance system. That will continue as well. It would, however, provide employment possibilities for those who have exceeded the time limit for unemployment, while providing workers for important projects.

[elocs]

4. Also consider, what if any jobs were those that could be done by union workers. n/t

[jwirr]

5. One thing we forget when we are talking about the CCC and WPA

is that they did not pay a lot. The workers were given room & board and a small wage. Not many are going to need r&b today (homeless would) and very low wages would have to pay more than unemployment so that people would want to take the jobs.

I am all for these types of programs but they are going to cost more today than they did back then.