Though Entitlements Are Structural, Not a Cyclical Problem, Entitlement Outlays Go Up with High Unemployment Real Entitlement Spending Y/Y & Unemployment Rates (%) 20% Real Entitlement Spending Y/Y Growth & Unemployment Rates, 1962 - 2009¶
- Real Entitlement Spending Y/Y
- Unemployment Rate 15% 10% 5% 0% 86% Correlation Between 1986 & 2009 -5% -10% 1962 1966 , www.kpcb.com 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 Note: Real spending adjusted for inflation. Fiscal year ends in September. Source: White House Office of Management & Budget, Bureau of Labor Statistics. USA Inc. | What Might a Turnaround Expert Consider? 385 Increase Employment - High-Level Policy Options to Consider Short-run options:
- Payroll tax holiday and/or
- Employment tax credit and/or
- Job training and/or
- Restore labor mobility by reducing housing imbalances Medium- to long-run options:
- Reduce employer health care costs and/or
- Improve vocational training/education and/or
- Encourage inward foreign direct investment, "onshoring" which would increase domestic employment ₽ www.kocb.com Source: Richard Berner, "Employment Prospects and Policies to Improve Them" (2/26/10), Morgan Stanley Research. USA Inc. | What Might a Turnaround Expert Consider? 386 HOUSE_OVERSIGHT_021034