miércoles, 30 de marzo de 2016

On minimum wage and youth employment

Working people in communist era earned a lot more than the would do in non-subsidized economic activity. Of course that was not the market prize they got for their activity. Not creating a market value means you are out. After long years of work they are made redundant.
Would they stay unemployed? Well, no. As Milton Friedman states they have a good working habits and will manage to reinsert working life again - one way or another. Which most of them did. Even in a toughest of the times labour preserves it's value.
The main point for me is to prove people that they are doing better that they really think they are in a capitalism society and try to make them think they can do even more.
One thing that the communist system did well is on creating good working habits, solidarity and it was high on discipline.
The human side of the capitalism shows when it recognizes all the benefits of the communist system that made capitalism works better today.
But than what happens with the youth unemployment from the 90-ties till Today?
The same as they are failing the system, the system failed them great.
If you are trying to create a demand for your product make that product appealing with all the attributes that the customer need so it "sells" well on the market. So, the Universities should start doing that and work closely with firms to met their demands.
The country would no more subsidize to meet the supply needs, but it's other way around now.
If other economies managed to succeed what we want to achieve, we want to know how.
If there is a cost, we wont to know at what cost.
If we need a little bit of communism to improve capitalism, I say why not.
What if communism has a market value?
As long as it does good, we would not argue the name.
We would like everything that makes our people happy, has value and therefore a demand.
As Milton Friedman says the disadvantaged are victims of low paid jobs all I can say to that is work hard on your expectation by starting from the bottom and never give up.

Milton Friedman on Unemployment.



Min wage and young unemployed


Good for those working now, but bad for young unemployed, unskilled.
As somebody working on youth unemployment I have no choice but to stand against. For some reason setting maximum and minimums never works in market economy. Wishing well is not enough.
At the end, if you´re poor better build a strong relation with your God. Not that I am religious but when broke it helps praying when nothing else works because psychiatrists cost money. Nobody gets rich working, same as good intention barely saved anybody.
The increase of min wage "looks good" but it can have negative consequences.
Milton Friedman calls them "the gooders" (government) and the "special interest" (trade unions). This unholy coalition is always there when it comes to minimum wages. "The gooders" would think that they implying to pay people more, but not. The "special interest" 
achieve to keep their members wages high.

The people that have low skills (young) that cannot justify the 7,20 pounds an hour would not be able to find a job. The firms must discriminate between people that have low skills ( Milton Friedman )
The one already working will certainly improve a bit their situation ( will continue to be poor, but less) and 7,20 will create an obstacle for other young people entering the labour market.



As part of my dissertation for youth unemployment i am completely obsessed with the concept of minimum wage as part of design a policy that work for young. How and why I don't know yet, but I know is very important.
I could see comments of people very happy about the increase of UK min wage from 6,70 to 7,20. Obviously they forgot or not have been ever in their life on minimum wages.
First of all, how can you call yourself happy living on minimum wage? You are poor! You are torn apart between the decision to continue your job as such or go on benefits.
It sounds good, but do you know what is life on minimum salary like?
It is like trying to make people feel less miserable, but still poor.
Second, nominal and real value are two different things. If you have studied economics you get sick and tired of hearing "nominal" and "real".
I must be missing something very important, but what?
Surviving on minimum wage takes guts.
Reading some psychology books, psychology students often do experiments between themselves to understand what are they studying. Call me crazy, but I got so excited by that fact and how important that is. How many times I have been praying in front of a cash machine there to be some money left on my account. And I am not even religious. There is no point to fight a cash machine. I tried, damn thing never listens.
So if you are not living on minimum wage in London, doubt you will understand what 7,20 an hour means.
The min wage is not set to promote or discourage employment opportunities but according to my understanding when thing go well in the economy to make the one on min wage to benefit from such economic success. UK doesn't have problem of high unemployment, but the opposite, so this makes sense.The min wage reveals the most vulnerable category in the economy whose earning fall bellow national average. Those are young, female and immigrants in most cases.The min wage tends to bridge the gap between the two extremes.So the main question remains an that is how to fit the concept of minimum wage in developing economy. I feel I have to discourage setting minimum for an "immature" economy.

miércoles, 23 de marzo de 2016

Capitalism gone (m)bad: Good intentions don't pay bills

This is how I imagine a decent class in Development Studies where certain things should be explained before we start learning how to make people feel lees miserable while poor (which is not my goal, but it seems everybody else's) Starting with explaining some of the basics. Maybe the rest is as a way to "ease the conscience" with the ex colonies that they used to plunder and destroy in every sense. But as born Macedonian, that would not be the case. Maybe as nationalized Spanish feel irritated that Latin American countries blame Spain for their backwardness. Spain left their lands long before UK did.
Milton Friedman in his "Capitalism and freedom" argues that you cant have both equality and freedom. They come into conflict with each other and one must choose.
Egalitarians defends "taking from some and giving to others". You are not free to have more than you need, its "unjust".
The other side the liberals will see the private charity as a way of using the freedom they themselves promote. Yet, sees the state action as more desired way of fighting poverty as it doesn't interferers with ones freedom to have more and not willing to share with others.
So there is a little shed of light upon charities from two different philosophies.
But as I dislike them this barely explains why. More accurate, I like them but not from the same reason as Western countries do.
I am so against unpaid or/and voluntary work that they seem to promote. Doomed to stay underemployed, still think the arguments offered in regard are numerous but I can find an equal number of contra-arguments.
So, let´s show us a little respect.
NGOs usually depend a great part of the volunteers, some more some less and there are even the ones that does not depend upon any volunteers. Yet, volunteers are there.
My general opinion is better bad paid job than unpaid.
Volunteering is for rich. I would have done it so long ago, but between my current job and studies I cannot afford. I CANNOT AFFORD! I apply anyway, but so far have not been called. Of course I would do it - If I can afford! At least one or two days in a week.
I see it as a great thing to help people (or NGOs and their great idea), but good deeds don't pay the bills.
Adam Smith saw the labour as the only thing that creates value and depends upon the "toil and trouble of acquiring" the commodity.
Since when we decided that Adam Smith was wrong and we can buy a cup of coffee by saying "please" to the shop assistant.
If the NGOs can't afford to hire a staff, the should simply cease to exist. The whole economic reason for existence in a market economy is to make a profit and because your labour creates a value that is competitive on the market. I can't believe that countries examples for a market economy, have a category of people who are sort of employed but don't receive money.
If being poor is capitalism, so is the cease of the activity of the inefficient player in such economy.
We can all see that everyday we are doing a pro bono jobs as I am doing right now nobody pays me to share my knowledge with others through this blog posts. Also we help our parents, help with raising our young siblings or how many times we have helped our neighbour when needed. But, that doesn't count because unpaid is unseen job. 
From my point of view if our job is unpaid menas has no value. We are helping them to raise money to be seen better in front of the donors. That fact seems to mean nothing as our effort to achieve that is unappreciated as it valued as zero. Always.
The gratitude for the job you have done can cover your emotional needs or/and clear your conscience but still you will need the money equivalent for your effort, intelligence and skills and that's why they are hiring you.
One of the research I came upon in the literature was saying that there are certainly tensions between the paid and the unpaid workforce in todays´ NGOs. Such tension would not exist if they just pay everybody a fair share.
Labour costs are the first that company wishes to cut as they come after material cost of production and in case of the NGOs they are the greatest expense of their budget. The problem is that labour force is always on strike.
In the society we need more than just good intentions to help people in need. Not just good intentions but well prepared and motivated staff would make a huge difference . Anyway, when we love the work we do we always tend to give more than we take.
Create value, and the money is there :)

jueves, 17 de marzo de 2016

Не сум луд, само сум невработен

Ментално здравје и небработеноста


Се чини дека ништо не може да ве извади од реалноста. Вашиот свет е опсипен со црни мисли и душевен немир, чувство на пониженост и постојан страв и неизвесност.

Често невработеноста е бездушна бројка, но Вие знаете дека вие сте биле или сеуште сте таа бројка која има чувства.

Во странската литература може да наидеме на општа согласност дека повеќето невработени лица се соочуваат со проблеми поврзани со менталното здравје.

Еден од авторите кои говорат на таа тема прашува дали невработеноста е цена која што треба да се плати додека економијата закрепнува и реструктуира?

Секако дека не. Цената е преголема доколку транзицијата или економскиот развој е бесконечен како македонската развојана голгота. Истражувањата говорат дека невработените вообичаено се соочуваат со низа проблеми поврзани со нивното ментално здравје, како:

- намалено чувство на општа благосостојба;
- анксиозност (општа возбуденост, чувство на страв);
- депресија;
- намалена самодоверба, чувство на бескорисност;
- социјална исклученост:
- намалена чизичка активност како резултат на чувството на безперспективност, итн

Невработеноста во Македонија е хроничен проблем која ситуација не се променила, одбележувајќи високи стапки на невработеност кај помладата генерација од осамостојувањето до денеска.

Во 80-тите години на 20 век Велика Британија причините за долгорочниот проблем со невработеноста ги пронајде во нарушеното ментално здравје на оние кои вече подолго време бараат работа. Тргнувајќи од предпоставката дека токму оние кои подолго време очајуваат за работно место имаат потреба од мерки насочени кон подобрување на менталното здравје се чини сосема логично е да се донесат посебно дизајнирано програми за мотивација комбинирани со висока парична помош за невработените.

Во научна студија која што зборува за невработеноста на младите во северна Европа споредено со југот на Европа донесе интересни заклучоци поврзани точно со менталното здравје на младите неработници.

Мојот заклучок од македонската голгота без да направам никаво истажување на терен беше дека младите се уште живеат на голем терет на возрасните и тешко се осамостојуваат, па ниту изгледа дека имаат намера тоа некогаш да го сторат. Се чини дека родителите се вечни должници на младите.

Иако не се толку проблематични, сепак се чини дека таков е случајот со повеќето млади на Југот од Европа. Младите во Италија и Шпанија добиваа најголема помош од родителите и покасно се осамостојуваат за разлика од нивната генерација на Северот. На Југот од Европа пак, паричниот надоместок за невработените беше минимален и временски ограничен за разлика од Северот. Значи, иако не уживаат голема парична подршка од државата сепак тоа е надополнето со помош од фамилијата во моменти на невработеност.

Иронично, истражувањата покажаа дека менталното здравје на младите на Југот од Европа е полошо од оние на Северот. Како младите се справуваат со невработеноста зависи и од нивната ментална способност и зачувување на менталното здравје во тие критични моменти. Теоретски гледано постојат два основни стратегии за справување со невработеноста во мементи на тешка состојба:

- „решавање на проблемот„ - да се најде работа на црно, емигрира или на друг начин, токму тоа, да се реши проблемот, или
- „емоционално справување„ - да се за зачува нивото на само-доверба и успешно справување со депресијата и ансксиознот.

Авторите сепак прознаваат дека младите во Европа не можат сите да се стават во една група. Како истите се справуваат со невработеноста треба да се гледа од гледна точка на културното наследство затоа можат да се забележат огромни разлики помеѓу  иста генерација со ист проблем но во различна држава.

Не само нашите традиции и вредносен систем, едно од темите за дискусија би требало да биде наследството од поранешнот комунистичи систем. Тешко дека во нови времиња сакаме да отвораме стари рани, но соочувањето со реалноста секогаш е болно.




lunes, 7 de marzo de 2016

The problem with overprotection: How (not) to deal with a youth lost in transition


Wealth is power - said. Mr Hobbs. The value of our commodity is the value of the labour to make that commodity. People cannot buy everything with their own labour that's why rich is the one that can pay to purchase or command a certain quantity of labour. The money we have to buy a good are a product of our own labour. We can exchange with others for the same quantity of labour. 
Basically, like Mr. Smith here, I believe little in God and more in market forces and they will put everything in their place.Mr. Smith here says labour gives a real value of things, but it is difficult to measure hardship and ingenuity to produce one same thing. We have money as things to mediate between two goods - the one we have produced and the one we need to acquire. The nominal value of the money can change but the value of the labour which purchases the good never changes.
If your labour force is sitting unhappy at home, watching TV or on FB the economy loses wealth and power. The most valuable thing an economy can posses it's its labour force or the intellectual capacity rather than natural resources. 
And there is no grater intellectual capacity than the one of the youth population that seems hidden or simply neglected by our country here.
Achieving adult status means making a transition in two domains: from education to labour market and from dependent child to establishing independence. That never happens in Macedonia. Even as adult macedonians can seem to do anything without the blessing either of their party or parents. How many of them are really independent when the house you live in was bought by your father and mother and maybe they had to leave to show the neighbours that their son became independent after he got married.
How many of those really worked to achieve their own independence is essential for my research to prove that macedonians are capable of taking their own initiative and making a difference.
It seems we are only capable to take our own initiative when it comes to leaving the country with our parents money. And what happens there is that from a spoiled brats we suddenly get this supper powers and work any job we can find to survive.
Overprotection is contra-productive and need to do more research on this.
Another problem that many of my university professors back in Macedonia discussed during my studies is the lavish wedding parents do for their yang adults for the sake of the neighbours.
The professors were saying that the parents should have used those moneys to help the youngsters to do something productive, like starting a new business help to become more independent. Families are literally starving to show-off in front of the neighbours. The main thing is to not fall beyond the standards of others.
It has not always been the same. During communist era jobs were guaranteed. People were given even a place to live or loans and other help to become independent as soon they finish school. Parents would spend for a weeding but it was worthed. It made sense. Now it doesn't. Our generation is living a lot worse than our parents. They are lost as well. Thinking that once married they will find job and live the parent house. But as that didn't happened many of them had to live the house they built instead.
Always thinking that the "third world" country refieres to a developing countries and the poorest. But no. First, when coined by Jawaharlal Nehru was used to define those countries that maintained their independence and are not considered to belong neither to West nor with the Soviet Union - the non aligned countries. Yugoslavia was wan of them, and the irony wanted it successor states to maintain that status but with a different meaning now.
When the communist era came to an end the people din't wanted to give up their life style so easily. The youngsters didn't wanted to live worse than their parents. My professors were reproaching us that we still think it's the state that has to call us for a job and drag you out of our parents home.
What it shows is that even our parents are probably sorry for the generation they raised. The over-protection of their own child, especially male that has to take the family name is shown to be very contra-productive. And maybe that is not the only reason for the eternal problem of youth unemployment, but definitely one of the reason to consider.
That's why I consider important my dissertation to give me some answers to that and share the findings. Not just a theoretical this and that, chatting and mumbling about unemployment. I would not be happy with that. We need answers. I need more than that. We deserve an explanation.
We are a generation lost in transition.
Well things change since. It's not a surprise to read that in Macedonia there is unemployment among the very well educated as the article "Macedonian job" by D. Cameron would suggest that even his tour guide in Macedonia had an MBA, there is something inherently wrong with us. And want to now what.
Another article in Macedonian language from an intelectual that I truly appreciate, points out the problem of over-protection as a main cause of creating unemployed youth. Mrs. Sinolichka Trpkova argues that the children (especially the male youngsters between 14-35 years old, and she calls them children for a reason, I guess) in Macedonia are the most privileged category. First they must get a good night sleep, she continues, and then mum has to give them money to buy cloths and to go out, make sure the lunch is ready when they come back, and it's a pitty to work that young and it's not their fault they are jobless. The ones working and studding in Western countries at that age are too stupid and can mange that well as we do, concludes Mrs Trpkova.
Well, this all makes great sense to me. And yes, in Western countries 15 onwards is the age to find a job. And fighting the unemployment in Macedonia is more than just fighting the numbers, but also dealing with stereotypes and popular believes that doesn't match the system we live in now and appeared in the post-communist Macedonia. They are young people that really want to work, and many. The majority.

miércoles, 2 de marzo de 2016

Партиска љубов и невработеноста на младите во Македонија

Грдата слика на невработеноста на Македонија е постојан декор кој веќе со години сите го игнорираат. Присутна, но во страв да не ги вознемириме нашите од партијата, македонската младина е затупена со политика која е надеж и единствена можност за излез од состојбата.

Наместо да бидат основен двигател и причинител на промени, младите се основна причина за застој на истите. Критичко размислување е сведено на партиско.

Од тоа произлегува дека, доколку би сакала да работам на мојот проект за невработеноста на младите во Македонија основниот предизвик е поврзан со бегање од секакви партиски толкувања на реалноста.


Во претерано исполитизирано опшество моиите истражувањки способности и методологии за истражување во областа на Социјаните Науки се доведени пред голем предизвик. Сакам предизвици, но морам да бидам свесна за овие ограничувања и да не ми се претвори трудот во партиска пропаганда.


Основна цел би ми била да им покажам и докажам на младите во Македонија каде се наоѓа нивната мака, пропаднат труд и чувство на безперспективност во однос на истите тие во Европското општество. Тие млади бараат и им треба објаснување.


Со овој мој научно - истражувачки труд, сеуште во мисла, би сакала да им покажам дека и без партиска љубов за младите има иднина, и тоа поубава од онаа што им ја нудат партиите.


Заради нивната способнот но и лесна манипулација се основна алатка за партиска пропаганда. Младите мислат дека без партијата се ништо и дека без партиска книшка нема иднина.


Баш напротив, партиите без нив се ништо. Младите имаат сѐ што треба за успех но без соодветна подршка и специјано дизејнирани програми кои ќе бидат испочитувани од прва до последна буква нема подобрување.

Европа во целина се соочува со овој проблем без разлика на нивото на развој. Младите се ранлива категорија. Секоја изгубена генерација значи голем пропуст за земјата и нејзиниот развој во иднина. Освен изгубена продуктивност, замрзнзати плати овој проблем како спирала која што се врти во круг, така се подхранува и се пренесува како товар и последица за секоја идна генерација. Не само што треба и мора да се решава проблемот на невработените денеска, треба со исто таков жар и немир да се бара решение и за изгубените генерации.


Невработеноста не е само проблем со пари, туку нарушено ментално здравје и физичка способност.


Се одлучив за ова прашање да го заокружам магистарскиот труд по Развојни Студии затоа што мислам дека е тема која што вреди да се вложи труд и разбирање. Критички осврт на тоа што е направено досега, како и на она што се нуди во моментов ќе бида само дел од она што треба да го изработам. Најзначајниот дел е да понудам решенија дизајнирани од она што младите посаакуваат и она што компаниите очекуваат за да ги доближиме овие два значајни ентитети што поблиску до заедничкиот интерес.


Да докажам дека Македонија е европска и по добро и по лошо.