Since there can’t be any more debt than there is now, it is best to cut down the government spending or a budget and use it on other places that can possibly help workers like Joe to get jobs. According to the pie chart of the U.S. federal budget, most of the money is being spent on the pentagon, which is the headquarters of the United States Department of Defense. Roughly 60 percent of the entire budget is being consumed in military and the wars. Although people’s safety should always be prioritized, the government can reduce the budget being spent on the pentagon little bit by reducing unnecessary researches on weapons for a while. With the money that is left, the government can spend on human services and employment to improve the working conditions and create more jobs.
If we are just aiming for the job creation for unemployed workers like Joe, there are various ways of cutting down the budget and spending on the employment. However, if the whole system works for specific group of people, the other majority will get an unfair treatment such as being forced to pay more money on medication because the government has decided to cut the budgets on health.
Another way the government can help create more jobs is raising the tax rates on products that are negative externalities. Putting up the tax rates on harmful products that are often addictive will shift the AD curve to the left since people who are poor will not be able to afford the products. In the long term, the individual’s health will improve and the black markets will activate.
Extra notes (Some of the problems with what I’ve said above)
Raising the tax rates on demerit goods can be very beneficial in long term since it provides extra money that can be spent on job creation and improvement of the society. The only problem is that most of the demerit goods like tobacco and alcohol are inelastic because they are addictive. Poor people (who are the major consumers of demerit goods) who can’t afford the goods will suffer from withdrawal symptoms, and the government will have to spend more money on rehabilitation and the health system