The Soviet Union and Nazi Germany had 100% employment with their production lines running always at maximum capacity. They also had vast storehouses of substandard products that could never be used sold -- but everyone was working! As Dr. Eliyahu M. Goldratt points out in his book
The Goal, it's a myth that constant production is a sign of productivity or profitability. One of the quickest ways to go bankrupt is to accumulate massive inventories. The products your employees manufacture need to be products that can be moved; otherwise they simply sit there as a millstone around your company's neck. Output needs to be calibrated to consumption. If you're putting your energies into production for a market that isn't there, you might be employing people for the short term, but you're unemploying them for the long term.
Work is not always better than non-work for the economy, and 100% employment is rarely, if ever, an optimal situation. After all, 100% employment is easy to create: you just eliminate the use of technology and put everyone to work at menial tasks. Of course, the efficiency of such a system is abysmal and productivity is low. It may suck for individuals in the short term, but often workers need to be unemployed to free them up for use in other sectors of the economy. It is far more important that the workers who are employed are contributing to the health of the economy than that everyone is working for the sake of working.
I never said we should be shutting down our coal plants. I said that as a nation, we should be taking the lead in the manufacturing of technologies that will help rebuild our infrastructure. Currently, Denmark leads the world in manufacturing of wind turbines. There is no reason why the United States could not supplant that tiny nation. We don't have to sell all these components to ourselves -- we can export them all over the world. My squad leader in my reserve unit builds wind farms in countries throughout the Western Hemisphere.
We don't have to tear down our fossil-fuel infrastructure, but as it reaches obsolescence, it should be replaced with better technology. When coal plants are shut down, they should be replaced with wind, solar, or nuclear. Instead of building new gas stations or repairing old ones, we should be replacing them with a new infrastructure, whether that's natural gas, hydrogen, or some other modality.
These technologies are expensive, partly because they're new but mostly because they are not widely used. As supply becomes more readily available and demand grows, prices will drop.
The problem is that we are too short sighted in this country. If our actions won't show a profit on this year's balance sheet, we shy away from them. By contrast, over the past few years in Japan, the
free-market entrepreneurs have been spending untold billions of dollars building a fiber optic infrastructure, losing frightful sums of money in the short term and knowing full well they won't realize a profit on their investment for as many as 50 years. But they also know that their children and their grandchildren will reap the benefits down the road. I wish our economic system would become more far sighted like this.