From: ohumukin@spectra.com (Kawika Ohumukini)
Subject: GNP & UNEMPLOYMENT BOTH UP ???
Organization: Spectragraphics Corporation
Date: Thu, 7 Jan 93 21:37:06 GMT

This issue of unemployment being bad may be blaming the wrong
characteristic of our economy.  Question:  How can the GNP go up
and yet unemployment also go up?  What are the advantages of this?

It was discussed earlier that technology plays a role in this.
Remember when people were afraid that a machine would replace them
in their position?  Today it's 19 year olds that use computers.
You must realize, as discussed in Paul Pilzers book "Unlimited Wealth --
The theory and practice of economic alchemy", that when someone is
replaced by a machine or technology, the society as a whole is better,
and so is that person.  Why?  Because the wealth of the service that
worker produced is still being produced maybe more efficiently and
accurately.  Now that person can do something else more or less 
productive depending on what they are capable of doing.  

Society benefits 2 fold by the technology and the workers new found
resourcefulness.

And since we live in a democracy we are ruled by a governing body.
At any one time that body is responsible for the welfare and growth
of it's nation.  What happens if this government stifles personal
welfare and growth, through cutting necessary government programs
and training and retraining, to the society and that worker?  
An implosion of great magnitude.  

Picture this, an island with 10 people all fish to support the local 
society.  Suddenly 2 people can catch the same number of fish with
a net, the other drives the boat.  Now the island has a problem because
8 people are unemployed.  The fish are still being caught so GNP stays
constant but now unemployment rate is at 80%.  The island elders can
a) train the 8 people to open a movie theater, build bridges, travel
to other islands and trade with them, discover a way to communicate
over long distances, build rockets, or a better boat, etc..  or
b) tax the 2 fisherman to support the other 8.  That is exactly what
the US tried for over 40 years by legalizing fair trade laws, ie: not
selling a product below list price.  This failed and we now have a
"free" market for people to learn and develop new and better technologies.

So we can have high GNP and high UNEMPLOYMENT and still thrive as a
country.  So where does this leave the unemployed?  Their situation
tells them to learn and grow and find a way to be resourceful.  People
don't pay for what you know, they pay for what you do or communicate.
And it is governments obligation to continually make available training
to keep up with changing technology.  Why do many adults still read
at grade school level?  At some point they ceased growing in that area.
It stifled their progress and they see the world rushing past them.
Their lack of training supports a belief of helplessness.  Have you ever
cornered a fearful cat?  You usually find out what happens when that
cat feels trapped and helpless, claws and hissing usually follow.
When people feel helpless they may attack the very thing they desire.
Ever get punched in the arm by someone that likes you?  

Want to end scenes like East LA rioting, Chicago, New York?  Do you want
a society of optimistic self-starting achievers?  Train them to do so
and we will all see it.  Want more of it?  Keep reducing education
budgets, cutting programs, raising tuition and health care, reducing
incentives and generally continuing the tradition of putting the people
with the most challenges all in one housing project and saying "See!!
Everyone else is as bad off as you!".

Just a differnt perspective on an ongoing challenge!
Cheers,

Kawika