How to make short work of unemployment

Germany has actually reduced joblessness through the recession – by cutting working hours. We could make it work too

Dean Baker
guardian.co.uk,Thursday 30 June 2011 19.08 BST

Washington always does a superb job of focusing intently on problems that are of little importance. The current, end-of-the-world debt/deficit negotiations is a great case in point. President Obama and the Republican congressional leadership are heatedly negotiating a deal on the deficit that has almost nothing to do with the country's real economic problem: mass unemployment.

The whole effort is a ridiculous charade that is intended to fix a problem that does not exist. There is no story of runaway spending or deficits, as everyone who has ever looked at the budget numbers knows. The deficit exploded, beginning in 2008, because the economy collapsed: end of story. Anyone who says otherwise either has never looked at the budget or is not being honest.