The Benefits of an Industrial Policy for Good Jobs
An effective industrial policy must be able to support various policies. The policy must increase the workers’ bargaining power at work and guarantee adequate aggregate demand in the tight market for labor. Also, it should enhance the security net of workers. The two should complement each other rather than a substitute for one another.
Long-term care sector
Investment in long-term care will create employment for thousands of Americans that will offer better benefits as well as allow them to negotiate together for better wages. This will improve productivity, security and quality of health care.
It is true that the United States’ industrial policy is dominated by the manufacturing industry as well as its supply chain. But an Harvard economist has recently proposed an alternative approach that would increase employment opportunities in service sectors like long-term care. An ideal job is one which provides steady earnings and aids in developing workers in their abilities. It will help to increase the number of employment opportunities within the service sector that has a the highest turnover.
Sector of Services
The third part of the economy is the service industry. It includes retail, office and service-related jobs. This is the biggest sector of global economic activity and employs the largest number of individuals. It is the service industry that consumers utilize. Although manufacturing and agriculture create tangible goods but they also offer services. Automation is removing jobs that require a middle level of skill. The result is a rise in the gap in income and instability within politics. This also negatively impacts the health of people and aspects of society. The democratic process is also affected by the decline of middle-skilled laborers.
The federal government needs to be committed to offering good employment opportunities in order to tackle this issue. The federal government should establish an taskforce that will review the regulations and offer funding to programs that are voluntary. Additionally, it must create governance systems to guarantee the quality of jobs and their quantities. The policy may include the obligation to offer better service as well as higher standards of quality for employees.
Small and medium-sized businesses
In contrast to conventional industrial policies which are run at a national level , and can be controlled by only large companies, an industrial strategy that is designed for medium and small companies must be tailored to the specific location. It is possible to create specific policies that meet the needs of market. This helps to encourage local business and create job opportunities.
It is crucial to establish the industrial policy in a more precise manner. The argument of Berger is valid in certain instances. A political consensus is essential in order to realize the goals of the state. Warwick’s assertion, “an industrial strategy for making good work for small and medium-sized companies” isn’t enough because it does not provide much detail on how intervention in industrial policy is carried out.
Public Investment Agreements
Industrial policies are crucial to making good work. As a way to get public funds the agreements permit companies to use the money. They are a common element of municipal and local economic development plans. The agreements have to be crafted to the specific needs of Commerce Secretary in order to most effectively serve the interests of the public to ensure that financial aid achieves the desired outcome. The agreements must also contain an element of worker-centricity, which will encourage companies to remain within the current wage and labor structure.
It is possible to structure public investment agreements to guard against the practices of corporate extractors. Stock buybacks as well as other financial extraction practices such as purchase of shares, can deter investments away from productivity or innovation. In addition, the CARES Act also prohibits businesses from paying shareholders or getting public funding. It also contains expansive language which permits the delegation of power to agencies of the government. Administrative states are responsible to determine the conditions of agreements between government and business.