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If you wanna get jobs back on track try working less our next guest -- a shorter work week could save millions of jobs Dean Baker of the Center for Economic and Policy Research joins us now.
From Washington August rate used to say that basically would go back to the eight to the theory any idea a job sharing.
Shorter work weeks.
That's gonna fix the unemployment situation.
Book it -- be a very big part of the story the basic idea is that if we currently we have unemployment insurance for paying people for being completely unemployed in the ideas that.
If instead of laying people -- we encourage employers to simply reduce work hours so you're gonna lay off twenty workers instead we say.
OK how about you have a hundred workers were 20% less.
And we make up half of that shortfall half of those lost hours.
We keep people -- work we keep them getting skills getting their skills updated.
We don't have this issue of long term unemployed.
And you know this is something that's being used very successfully elsewhere most obviously Germany there unemployment rates actually lower today than -- at the start.
The downturn of the Geneva so I don't know the Germans and the French like twelve week vacations dean I mean -- they -- -- -- The point is that I think people would be happy with that here -- we have unemployment I didn't and good cop -- happen but how can you make this argument when you've got productivity.
That's hitting all new highs companies are doing more all the blend the same -- they want us to work five days a week because they've got to make money because for me still believes in our house -- they need to at least.
Survive with their family as it is -- I -- -- their job or pullback and I think they can even -- workers well would you like worker you don't wanna be laid off the new it's worth five million you got -- I'm not gonna sit in and if you got under duress and there are.
They're worried about losing it so we're talking about a situation where you workers working somewhat less hours -- somewhat less pay its alternative to being laid off I think while workers would take that in -- second.
I just missed my dear friend and maker question -- -- -- by the -- name are you forcing employers to pay for benefits for the such store employee.
Well what you would do is you reduce their their work by let's say -- -- 20%.
-- reduce their compensation by say 10% with the government making up the -- follow all ten and the government -- unemployment benefits in this country so it's not an additional money it's that you wanna pay people to be out of work I'd rather pay them to -- -- sort of -- to get people that are unemployed employed in number that would be wonderful I want to somehow you can't do that that would be great but -- it's got the idea acting give you one -- don't like -- I don't I have a slightly please give -- your idea I do I will spend tons of money if -- if not lower from money.
Yeah that's what that's what -- -- where I come from around about you would have come from where you where you went with let me ask your question where does the government source of funds that pay for these people to make up -- guess what I got in the markets today government buyouts at 2% interest it's a record low interest -- that's where it gets the money back on the front as it there is a very -- -- -- -- three years ago and then they were paying 30% on a two year note.
That's what you want -- ago.
And indeed Andy and honestly we're not quite as they go right low interest -- Michael my about this agree about your your sampler comes that's unemployment in terms of they -- like to see more more -- get off unemployment completely but but let me bring in the and she for -- from a what do you think of this idea I mean they.
Just south of socialism again I mean unit of the envy that this -- the model works well clearly got -- hasn't generated idea here you'd think being unemployed it's capitalists getting jobs socialist who I think gonna put -- Right when you're definitely telling me that these people working five days a week that in making their salary they're not gonna take a 20% cut if they take a day off.
If -- -- point eight 10% that they don't have no arithmetic you think you retaining the unemployment benefit dividing it among the people who are working okay dividing money amongst other people to me is a socialistic type of attitude.
And I don't know what you're gonna get you hit it right from the bottom get what has had -- -- them -- -- -- you would you give up 10% a year income.
If I was working 20% less you won't have to twist my arm yap and -- -- okay.
Well well did not take 20% a year income out of her -- -- exactly a little -- that Dean Baker Center for Economic and Policy Research did you adjusting idea dean thank you very much Michael was very excited Letterman show.