In the previous diary on NJ JOBS we examined the wrong track approach which emphasizes reducing government, budgets, and debt. By putting people back to work, however, the state can regain tax revenues needed to reduce indebtedness and replenish our unemployment, transportation, and pension/health funds. More important, it brings a measure of relief, security and optimism, sorely lacking now, to people who want to hold on to their home, put food on their table, pay bills, and reduce their reliance on government support. The argument should not be, as Christie says, over jobs for the private sector vs. the public sector because both are essential to our economy and our well-being.
Our state government, famous for imposing objectives on organizations it funds, could set its own objective for lowering unemployment. A decrease of just 1%, from 9.5% to 8.5%, in the unemployment rate would add about 45,000 new jobs for those who are now struggling. At an average salary of $25,000 it would add over $1 billion to our economy, part of which would go to taxes, strengthening the state’s revenues. A substantial reduction in unemployment to 5% or 6% is a longer term objective which entails retooling education, innovation and automation for new jobs replacing those which are no longer needed and in which we are no longer competitive. A state goal of 1% or 2% is not an impossible dream.