"Not a Cure All, But..."

by the Sandwichman

From the Globe and Mail Report on Business, yesterday:

Yes you can: Save jobs by sacrificing your time and money.

As employers and employees confront the spectre of mass layoffs, creative measures are coming to the fore, including individual workers cutting their workweek to four days, with a proportional cut in pay.

The idea gained currency this week in U.S. President Barack Obama's call-to-duty inauguration speech. America's recovery, he said, in part will rely on "the selflessness of workers who would rather cut their hours than see a friend lose their job."

The Sandwichman points out the potential pitfall of the "proportional cut in pay" line. If workers are expected to handle the same workload in four days, it's just a speed-up with a pay cut. And what does that do to consumer spending? Here's where government needs to step in to make up the difference in pay as part of its economic stimulus package. More on that angle from Dean Baker in Monday's Guardian.