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What Should the Government Do to Create Jobs in the United States?

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What should the government do to create jobs in the United States? The rate of unemployment in the U.S needs to be addressed by the federal government in order to arrive at a long term solution to the problem. Over the years, Americans have been urging the government to create new employment opportunities for the growing population. The U.S economy has indicated great recovery over the past decade but the unemployment problem is yet to be settled. The major problem is that the working population is constantly increasing but the creation of new jobs does not run parallel to it. Jobs are very scarce in the nation. This has caused the rates of unemployment to increase gradually. This paper focuses on what the U.S government can do to create jobs. An increase in government spending will definitely translate to creation of more job opportunities for the growing work force. This is mainly because as the government increases its projects across the states, it will need more people to work on the projects. The government requires a lot of labor on its projects and therefore, an increase in the government spending will create a labor deficit that will be filled in by a good number of the currently unemployed people. The government can attain this by expanding firms that will need more raw material suppliers and laborers. The initial expansion plan would also create jobs during the construction process. Building and maintenance of infrastructure can also create jobs for the people (Boushey & Ettlinger, 2011). The government can also indirectly create jobs through enticing the business persons to invest more. This can be achieved through giving incentives like tax cuts or reducing the cost of conducting business for the new enterprises. Constructing better infrastructure for the convenience of the manufacturing industries will reduce the cost of doing business. The funds saved in the process will be injected into expanding the industries, thus creating employment opportunities for the people. Tax cuts on income will mean that the people will have enough savings to create small businesses that will enable self employment and create employment for other people. Funding the poor in the community can also create more jobs if the government sends funds into community projects aimed at helping the poverty stricken people in the society (Boushey & Ettlinger, 2011). Development projects in the rural areas are viable ways of jobs creation. The construction of infrastructure will need laborers from these areas. Starting of government businesses, construction of homes for the rural people and building schools among other social amenities in the rural areas will create jobs and attract investors to start businesses in these areas, which will add to the total number of jobs created annually. The investments will not only improve the quality of life for the rural people, but it will also provide employment opportunities for them. The new educational facilities will create job opportunities for teachers and those who will gain skills from the schools will have the opportunity to work in different areas (Boushey & Ettlinger, 2011). The U.S government should review the current monetary policies in order to ensure that the national debt is brought to a minimum. The policy of spending what the government does not have limits the budget. The government needs to have the required funds at hand for the increase in government spending. When most of the government profits are injected into debt paying, little is left for national development projects that are aimed at creating more employment for the Americans. Reviewing the monetary policies to reduce the national deficit spending will also mean that the government will be able to provide various tax cuts to the citizens, which will lead to an increase in investment and a subsequent increase in employment opportunities. Combating inflation is the first step that helps in national saving since the prices of commodities are bound to decrease. The government needs to reverse the trend of borrowing and spending, and adopt saving and spending (Schiff, 2011). A review of the current fiscal policy may also be the key to jobs creation in the American economy. The government needs to create an economic environment that is friendly to the business people and one that motivates the growth of the corporate world in the economy. The taxing policy at all levels in the U.S should be reformed into a national tax policy that favors the corporate and individual tax rates. This will spur investments that will create more jobs for the unemployed Americans. It will also motivate investors to take risks in expanding their business productivity in a bid to make more profits. In this process, the investors will create a labor deficit in their enterprises that will take in a big number of the jobless Americans. The government should tax Americans on their spending and not while making the money. The tax money at the production level can be used as capital to create employment opportunities for the public (Schiff, 2011). The government should regulate the cost and risks involved in business. Most employers in the U.S fail to expand their businesses due to the fear of inflicting more liabilities and taxes to their business which seems unreasonable. Security regulations in the U.S are too harsh for businesses and they may limit the number of employees that an employer can hire. A review of such policies that are liabilities to the business owners can help in reducing the liabilities and promote business expansion. This would subsequently lead to an increase in the number of employees in most businesses. This is especially true for the small businesses in America whose owners try as hard as they can to keep the liabilities at a minimum in order to secure higher profits. The government also needs to eliminate the minimum wage since it dictates the amount of money an employee is supposed to be paid. The high minimum wage has caused many employers to stick to a fixed number of employees (Schiff, 2011). The US economy has gone through a tremendous recovery from the great recession period. Unfortunately, the number of unemployed people in the nation is ever increasing due to the slow progress in jobs creation by the federal government. There is need for the situation to be addressed since jobs have become scarce across the nation. The government can reduce taxes for the people in order to entice them to invest the resulting surplus savings and create self employment as well as jobs for other people. The same can be applied on the corporate sector. Government spending can create employment if the government increases its spending by expanding its firms and constructing infrastructure. Reviewing the current monetary and fiscal policies may also have a long term positive effect on the creation of jobs in the U.S.

References
Boushey, H. & Ettlinger, M. (2011). Government spending can create jobs-and it has. Center for American Progress. Retrieved from: http://www.americanprogress.org/issues/2011/09/yes_we_can.html
Schiff, P. (2011). How the Government Can Create Jobs. Lew Rockwell. Retrieved from: http://lewrockwell.com/schiff/schiff137.html

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