August 22, 2012

To create jobs, we should start by firing the current bank regulators!

Sir, Sebastian Mallaby in “The US labour market does not work” August 22, reduces the discussion about the increasing unemployment to an issue about the government incentives for the workers to work, which is important, but leaves out completely the much more important angle of creating the new generation of jobs that will provide its own incentives to work. 

Let me just hint at one possibility. If the capital requirements for our banks were partially based on the potential of job creating ratings, instead of as now on the perceived risks of default of which have already been considered by the bankers, our small businesses and entrepreneurs might stand a chance to deliver us the new jobs we need and want. 

Frankly, one of the best ways of getting jobs is putting the current generation of bank regulators who do not understand one iota about the need for risk-taking, out of a job.