A true free market economy ensures 100% employment for the local people. The basic right of all people is to be guaranteed the minimum essentials for their existence, including at least proper food, clothing, housing, education and medical care. This basic right should be arranged through 100% guaranteed employment, not through welfare or dole-outs. Unemployment is a critical economic problem in the world today and 100% employment of the local people is the only way to solve this problem. This can be achieved only through true free markets where wages of the workers are allowed to catch up with their productivity. In US economy, since 1970 wages have trailed productivity of employees which has transformed free market capitalism to crony capitalism.
Local people are defined as those who have merged individual socio-economic interests with the socio-economic interests of the regions where they live in. The primary consideration in determining a person’s socio-economic interests should be whether or not hr or she has merged their individual interests with interests of the location where they are employed, regardless of their nationality, colour, creed, race, mother tongue, birthplace, etc. For example, If I have immigrated from India to US and make a living in Orange County of California, I have merged my individual interests with Orange County. Those who earn their livelihood in a particular place but spend their all their earnings in another region do not contribute to the economic growth of the region where they are employed. If local people continue to spend most of their earnings outside the region where they are employed then it results in the drainage of the capital and undermines the economic development of that local region.
Today, As a result of centralized supply chains of MNCs, there is a continuous drainage of wealth from local economies all over the world. In nearly all cases the profits that are accrued through globalization are spent outside the local area or are remitted to outside stockholders of parent companies. This also encourages speculations in stock markets and for free markets to function efficiently such speculations have to end.
To create 100% employment among local people, free market economic planning should have both a short term and a long term economic plan. In the short term plan, labour intensive industries which have been lost to offshoring should be restarted through onshoring without any delay or should be made more productive in regions where they already exist. These industries should ensure not just adequate production but should also ensure adequate consumption of products. Only when there is a rational distribution of profits based on productive contributions of workers, it is possible to have a free market system where wages catch up with productivity of employees. Such a monetary policy would also garantee an adequate purchasing capacity to those employed in such labor intensive industries. In addition to guaranteeing a purchasing capacity to local people, this monetary policy would also ensure their continued existence and growth.
In the long term planning of a free market economy, capital intensive industries should be developed to increase the productive capacity of local economy. Free market Mass Capitalism should follow a three-tier model for capital intensive industries based on self-reliance, maximum utilization of local resources, rational distribution of profits, economic decentralization and progressive increase in the standard of living of all people. Only through a never ending creation of new industries, can new products and new production techniques incorporating the latest scientific discoveries be introduced to increase the vitality of local economy. Long term planning should also adjust the working hours with available labour to maintain a balance in the supply of goods with their demand to maintain full employment.
To solve the unemployment problem in both the short and long term there must be an accurate understanding of the surplus and deficit manual and intellectual labour trends. In most of the countries of the world where there is high unemployment, there is surplus manual labour. So manual labour intensive industries are required to create employment in those regions. In some instances where deficit labour exists for an expanding industry, employee retraining programs should be introduced through university-industry conglomerates to equip workers with the necessary skills for employment.
Another way to help solve unemployment, especially in rural communities, is the utilization of plants for economic self-reliance. There should be a research done in order to increase the plant and crop varieties by properly matching these with the soil, topography and climatic conditions etc. in local regions. Reforestation can reclaim arid and semi-arid regions, and planting fern could attract clouds to help radically transform the rainfall and weather patterns of a region. Agro- and agrico-industries based upon the productive potential of different plants can also help solve rural unemployment by creating a range of new goods and services.