Reducing unemployment

The Director of Economic Policy at the American Enterprise Institute, Kevin Hassett, says reducing the minimum wage to $5.85 an hour (about a 25% decrease) and concession bargaining by unions would have a major impact on unemployment. Of course this would not address the actual causes of the Great Recession, only impose its effects even more harshly upon employees. If thats not enough, the Economic Policy Institute says corporate profits are 5.7% higher than in the 4th quarter of 2007, while the number of jobs is 5.9% lower. This L.A. Times opinion piece excoriates Hassett's idea too.

Can unions save the middle class? Doubtful

The Economic Policy Institute says the answer is simple: higher union density is needed to preserve the middle class. One blogger takes on the logic. Productivity declines is not the problem, but marginal performers will suffer job losses.