Monday, July 23, 2012

It's Labor Day...but where are all the American Jobs?

I will start today's blog with a quote from President Reagan back in 1981,"...government isn't the solution, government is the problem!"

As America waits for the President to give his long awaited jobs plan speech this Thursday, we got to think for a moment and say is this really America? The August employment report came out and the number of new jobs created: ZERO. The unemployment rate, as of today, remains at 9.1%. The number of fellow Americans who are unemployed today is officially 14 million people. A CNN poll that just came out last week, stated that 8 out 10 Americans think we are still in a recession. The situation is dire.

In a recent interview with Ken Rogoff, a professor at Harvard University said, "Well, clearly we're stagnating. I mean, the employment numbers have been getting weaker and weaker for a while. I think what it really underscores is that the recession never ended. We have not got back to where we started on output. We're not close on employment. We're still very much crawling our way out of the recession. And right now...nothing."

The editorial writer for the Wall Street Journal, Stephen Moore says, "There is a BIG difference between the two parties and it may lead to gridlock." I think that train has unfortunately already passed us. "But I don't think either party has anything that they've proposed that will get us out of this because I think they're missing the fundamental point. And that this economy does not appear to be capable anymore of creating enough jobs to put enough decent jobs on the table."

Richard Trumka, president of the AFL-CIO and a member of the President's Council of Jobs and Competitiveness, also has some interesting things to say about America's current economic situation. Trumka states, "We have bad trade laws, we have tax laws that reward people for moving jobs overseas. If we'd focus on manufacturing here and all of us coming together, labor, government and business, and business and labor all working together, we can compete with anybody in the world. Because if you don't compete, if you don't manufacture things, you can't compete in the global economy!"

So where do we turn? Who has our best interest? What are some solutions?Here are some possible solutions being put on the table from both the business and labor sectors:

1) Eliminate the number of government regulations that are killing job creation.

2) Lower taxes on individuals and corporations (maybe even a possible flat tax?)

3) Target specific communities throughout America for job creation.

4) Regulate Wall Street.

We must remember economics 101....demand drives up business and hiring. From CNN's Your Money show, the host Ali Velshi says to the President:

"And finally, go big Mr. President. Americans are not spending money because they're frightened about their economic have to tell America how it can be great again. Extract yourself from the embarrassing quagmire that Washington has become. America has reason to be proud and hopeful. This is a tall order, but lay out the road map on Thursday. Tell us how you think we'll get there. Maybe you will be right, maybe you won't be, but we'll have something to talk about other than politics as usual."

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