Story:

An engineer who while visiting china came accross a large crew of men building a dam with picks and shovels. When the engineer pointed out to the supervisor that the job could be completed in a few days, rather than many months, if men were given motorize equipment, ex: backhoe, the supervisor said that such equipment would destroy their jobs. The engineer responded “Oh, I thought you were interested in building a dam. If its more jobs you want, why dont you have your men use spoons instead of shovels.

Its true that unemployment is bad. Unemployment causes poverty. But should we sacrifice efficiency for jobs? I found its hard to answer it. I know that i am not so literate in economics but ill try to give my view on it.

First, should we try hard to achieve 100% employment? My opinion is, lets return it back to the people who is jobless. A Indonesian woman graduated fron harvard might choose to became a household mother despite all the opportunity that she could get a great career in Indonesia.

Second, should we raise minimum wage payment (upah minimum regional = UMR) ? Raising minimum wage payment too high or to soon would increase unemployment and also reduce the incentives to get a higher education. For example: if the UMR is raised from IDR 1 mio to IDR 2 mio then the incentives to go to higher education or university would be reduced.

Third, technology innovation reduce jobs? I dont think so. The job it creates more or less the same than the jobs it reduces. You see it yourself.

My own conclusion is in boosting economy from business we should strive for productivity (and sustainability) first. Second is employment.

To early in concluding? You decide. =)

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