Federal government bailouts for states are an absolute contradiction to the principles of Federalism. Now instead of state governments fending for themselves, the citizens of all states–whether they be fiscally responsible states or not–are forced to pay for the citizens of other states through the federal government. Unfortunately, the people of Wyoming have no say in the election of politicians in California. Irresponsible states have spent themselves into the ground, and we are supposed to pick up the slack? I say no. Not only is this irresponsible fiscal policy, but it is a complete smearing of states’ rights. This is a very dangerous path we have taken. Long gone are the days when states had any perceivable sovereignty at all. Now, the states are no more than appendages to the federal government; extensions of the bureaucracy.
Just guess what I’m responding to…
Only a free market can create commercially viable job scenes in society. They are jobs based on economic demands, not the ideology of a politician or a bureaucrat. If you are structurally or frictionally unemployed and wish to change your situation, you can go to school to acquire the necessary skills to fit the jobs that are present. The government must not waste money allocated from the private sector on welfare, unemployment benefits, and false hopes in the form of Keynesian economics.
I would also argue that cyclical unemployment is in fact not a problem at all. There can never be an exact number of jobs to fit the labor force, and to try to employ everyone in a presumably dynamic economy is a fools errand. Cyclical and structural unemployment are not completely exclusive either, as a contraction of the economy may indicate shifts in the various job markets, and even sociological shifts.
On a side note: The printing and spending of money by the government in order to increase inflation and lower unemployment is valid if you take for granted the premise that the relationship between inflation and employment is based on currency supply only; a premise I am skeptical of.
Lastly, calling the classical view of unemployment only an assessment of a person’s willingness to lower their wage expectations is a one sided/close minded assertion, as employment and wages constitute a complicated question of efficiency, and the relationship between labor hours and wage benefits.