The Future of Industrial Policies for Good Jobs
An industrial policy for good job opportunities is a vital one that must be supported by other policy options. It will strengthen the bargaining rights in the workplace in order to ensure adequate demand for labor in a competitive market, and increase the safety net for workers. They should be complementary not substitutes for each other.
Long-term care sector
Investing in the long-term care industry can create employment for hundreds of thousands of Americans which will provide greater rewards and the possibility for collective bargaining and organizing for a better salary. This improves productivity and improve the quality of services provided to patients. This will reduce health-care costs and preventing unnecessary deaths.
It is true that the United States’ industrial policy has been heavily influenced by manufacturing along with its supply chain. However one Harvard economist recently suggested the need for a different approach to create more employment in services sectors like long-term care. An ideal job is one with a stable income and aids in developing workers’ capabilities. It will help to increase the number of employment opportunities for those working in the service industry that has a large turnover.
The Services sector
The third sector of economy is the service industry. It encompasses retail, service, as well as office work. This sector is responsible for the majority of global business activity, and also employs the most individuals. The service sector is what people use. While agriculture and manufacturing create tangible goods but they also offer services. Automatization is eliminating jobs that require a middle level of skill. This leads to increased economic inequality as well as political instability. This also negatively impacts health outcomes and other aspects of society. Democracy is also affected by losing middle-skilled people.
The federal government needs to ensure that it provides good job opportunities to solve this issue. Federal government officials must establish taskforces to examine regulatory responses and provide funding for programs of a voluntary nature. Additionally, it must set up governance procedures to ensure employment quality and the quantities. This could be a requirement to ensure that the quality of work is higher and provide better services to workers.
Small, medium and large businesses
Unlike traditional industrial policies, which are administered at a national level, an industrial policy to create good jobs for small and medium firms needs to be specific to the place of business. It is possible to create specific guidelines to suit the demands of the market. This can help to boost local businesses and provide good work opportunities.
The definition of industrial policy has to be more precise. Berger’s argument is true in a few instances. Political consensus is necessary for achieving the objectives of the state. Warwick’s phrase, “an industrial policy for good jobs in small and medium-sized enterprises” is insufficient, as it isn’t revealing anything about the character of the industrial policy actions.
Public investment agreements
Public investment agreements form an essential element of the industrial policy to create good jobs. In return for public funding they allow businesses to use it. These agreements are the norm in municipal and local economic development programmes. These agreements should be customized to the specific needs of Commerce Secretary in order to best serve the public’s interests and ensure financial aid is able to reach the goal. These agreements must include a worker-centricity element, encouraging companies to remain within the existing labor and wage structures.
Public investment agreements could also be designed with guardrails against the use of extractive methods by corporations. Stock buybacks as well as other financial extractive methods, such as buying back shares can distract investments towards innovation and productivity. It is also illegal to pay for stock buybacks. CARES Act also prohibits businesses from making payments to shareholders and from receiving public subsidies. It also contains expansive language which permits transfer of authority to government agencies. The state of administration is accountable in determining the terms and conditions of government-business partnership agreements.