Regarding current “ job situation” or high unemployment rate, I don’t believe that there is any magic bullet to quickly solve it. In many senses, job recovery can be pretty much independent from how much the public outcries for the administration’s mistakes or incompetence in solving this problem.
Current bad job situation is the outcome of this country’s industrial and political structural misfits and the crash of bubble economy after being buoyed by the financial sector’s reckless gamblings. In this country, everybody cares only for themselves and demand that the rest of country, people should sacrifice for their benefits. There seems to be no common goals, collective wisdom, or cooperation among individuals or different entities. The finacial industry, health care industry, labor union, and many social sectors have been out of sync, manipulating government policies and social structure in their favor, demanding to protect and maximize only their rights, benefits, and profits withouth considering, accepting the reality, often at the huge sacrifices of the rest of the economy and industrial competitiveness. The current recession and job losses are just the simple outcome, side effect of this social, structural failure of this country and an event that happened to accelerate the gradual process of winding down this economy within a short time.
Most manufacturing industries with high labor components have been destined to either disappear from this country or hugely downsize, which have been predicted from long time ago. This process will continue regardless of whether the public likes it or not. Computerization, modernization and automation of human labor parts in industries / manufacturing processes have been expected to eliminate physical jobs and replace human labor with computers, robotics, or machines. In grocery stores, we have seen human cashiers at checkout desks to be increasingly replaced by self-checkout desks and scanners. We are talking about mess in health care industry’s administration and the need to computerize the administrative work to reduce the industry’s operating costs.
This country was expected to rely on high tech industries, financial industry, and retailing and service industries to provide enough jobs that people need to survive. But nobody knows how many new jobs these so-called newage industries will be able to create in contrast to disappearing manufacturing jobs in this country. The whole social system has been structured to hugely disadvantage US manufacturing: high labor costs (symptom of rich country), high health insurance/medical costs (both of which put the operating costs of US manufacturing at huge disadvantage) and often incompetitive marketing capability of US industries despite the existence of worldwide renown business schools in this country.
From NPR, I heard that many disappeared jobs from the financial sector would not come back even after recovery. Nobody is able to fundamentally solve this problem and just kind of waiting for time to solve this problem.
Once Prof. Krugman suggested to reduce US working hours from current 40 hours to less, to make more people share existing jobs and reduce unemployment rate. This suggestion is actually what Germany (which has similar problem as US in creating enough jobs) has relied on to make more people work as job supply in that country has not been enough to meet job demand over time.