Published CommPro.biz 2014.02.27

The Solution
 

“What do you think is the most important problem facing this country today?” The folks at Gallup ask 1,000+/- scientifically chosen Americans that question the first week of every month. Last week (2014.02.17) they released the answers for this month. Jumping back into the lead it shared with “The Economy” every month from 2008 until last fall, was “Unemployment and Jobs”. So despite the chorus that has been droning “debt/deficit, debt/deficit, debt/deficit” during that same timeframe, the public has been worrying about unemployment, jobs and the economy. The deficit and debt has been at the bottom of their list after other concerns like healthcare and the politicians who are supposed to be doing something about these problems.

Actually the politicians beating the deficit drum are the ones who were in power when it was created. So if the people are concerned with unemployment, jobs and the economy, why do they keep sending the debt creators back to Washington to complain about their creation? The answer is twofold. Firstly, those who benefit most from the policies of debt creation –the ultra-wealthy– pour money into the election campaign coffers of the debt creators. Secondly, gerrymandered districts –immune to democracy– have been created for these servants of the wealthy.

How do we create jobs, reduce unemployment and fix the economy? We don’t claim credentials when it comes to economics, nor are we relying on the host of economists who see the solution we see. We are just reviewing the past. If you start at the beginning of the modern economic model –the industrial revolution and the birth of capitalism– you find the beginning of the pattern of periodic downturns in the economy, mostly caused by one greedy sector or another.

If you examine that series of ups and downs you will find that without exception, when the economy went down, recovery was triggered by the same solution. The government stepped in creating jobs, jumpstarting recovery. There is not a single instance in the United States or any other modern economy where a downturn has been reversed by any other means, not one. The idea that austerity is the path out of an economic downturn is a proven failure. Anyone who reviews history can see that. We see it today in Europe, nations teetering on the brink of bankruptcy. Germany, the strongest nation in the EU, is stagnating. We are the strongest nation in the world. Yet we are creeping; dragged down by the debt creators.

Now is the time to repair our crumbling infrastructure, to invest in education, to fund research, to create the jobs that will pull our economy out of the mud. To do what has been done every time we’ve faced this problem for more than 200 years, jumpstart growth. The people have been worrying about unemployment and jobs for five years. We know how to fix that; it could have been addressed in 2008. Makes you wonder why some of those charged with fixing it have instead focused on the debt/deficit; maybe a distraction?

"Am I wrong?"--"Am I Nuts?"-

-"What do you think?"--"Do you agree?"

A New Path?

The unemployment rate in the United States dropped precipitously last month (11.11) to 8.6%, the lowest it’s been since the early days of the recession in 2009. The disturbing note, however, is the contributing factor of those “no longer looking for work.” In addition to giving the merchants of gloom something to point to, it raises the issue that we would hope would concern us all. What happened to all those people? They didn’t just fall off the edge of the earth.

If they are still receiving unemployment benefits, they must be near the end of that lifeline. Odds are they have other family members who are still working, and while they may be tightening the family budget, they are not out on the street. In some cases they and perhaps their families are headed for disaster, loss of their car, even their home. That raises an ethical question for those cutting funding to our safety-net programs. How ethical is that effort? Is that the kind of nation we have become? Times are tough, crush the poor.

On the brighter side, maybe those no longer hunting for work have found it, at home: on the computer, in the basement, in the garage. History teaches us that tough times are when new enterprises are likely to be launched. Counterintuitive as it may seem, even comfortably employed individuals will leave their employer during dark times to launch the business they have been thinking about for years. And of course others, who have been thrust into the world of the unemployed unexpectedly, think “What the heck, I might as well give my dream a try.”

A series of articles in the business journal Fast Company got us thinking that there may be more going on in the current episode of lean times. Launching a business is never as easy as it looks, but it’s a whole lot easier today than ever. Depending on where you live, you can get set up with your local governing entity for a few bucks and open a bank account in the business name. Then your major problem is having something to support you and your family until it catches on.

A century ago, your prospects for customers when you opened a shop were those who happened by as they walked down the street, or those who heard that you offered sewing services from your home. These days, with a tad of social network skills the world is your marketplace. You can do business with someone a world away as easily as your next door neighbor. There are services that will connect you and guarantee that you get paid. You can even take credit cards without a major investment in technology.

And some of those with manufacturing skills that seem unwanted in today’s work force are finding that they can use those skills to create things in a world where handcrafted quality is appreciated. From welding to woodwork, handmade goods are in demand. So perhaps those who are no longer looking for work have created their own little corner and are very happy there, thank you very much. And if they do well, they may hire a helper or two. That’s where jobs are created.  

 © 2011 GLG