Today, Krugman, is suggesting that the US Government introduces time-sharing at jobs along with subsidies for companies hiring. Oh and of course, he think the previous many stimuluses and bailouts (worth many trillions of dollars, equivalent of handing $100,000 to each person living on the US soil) was not enough :
Just to be clear, I believe that a large enough conventional stimulus would do the trick. But since that doesn’t seem to be in the cards, we need to talk about cheaper alternatives that address the job problem directly. Should we introduce an employment tax credit, like the one proposed by the Economic Policy Institute? Should we introduce the German-style job-sharing subsidy proposed by the Center for Economic Policy Research? Both are worthy of consideration.This reminds me of the massive failure of the 35-hour-work week in France, along with the all the subsidies the French socialist goverments are giving to companies, while structural unemployment has never really declined and has been at about 15% for decades. But then, maybe calling it German will make it work?
The point is that we need to start doing something more than, and different from, what we’re already doing. And the experience of other countries suggests that it’s time for a policy that explicitly and directly targets job creation.