Kick the Job Market Blues

Similar to the universal call of the real estate profession of location, location, location… the battle cry of Americans today is Jobs, Jobs, Jobs!! Where are they? The current ruckus in Washington may have centered on the debt ceiling debate and those Tea Party scoundrels having the nerve to force our Government to curb their drunken sailor type spending habits. Our clueless President continues to call for higher taxes on the so-called wealthy – from small business owners to corporate jet owners (really?) who won’t pay their fair share. The stock market is tanking faster than Tiger Woods comeback. And the White House continues to act like eleven year old girls pointing fingers at the GOP, the Tea Party faithful, Standard & Poor and even George W. Bush for getting us into this mess.

As a conservative, I never thought I would be longing for the presidency of Bill Clinton who lingered over an economy that was close to full employment. It was also helpful that the Monica Lewinsky saga so engulfed Clinton in legal proceedings, rendering him neutered in setting policy, thereby allowing the invisible hand of the market to work its magic without interference from the White House.

The overriding issue in our country can be summed up in three words -- Americans Need Jobs – and now. Instead of raising taxes on an already struggling working class, which includes those upwardly mobile and much maligned affluent professionals, wouldn’t it be better to raise “revenue” from a few million more workers who will make up the government shortfall by contributing their fair share of federal income tax and payroll taxes (Social Security), instead of being a huge drain on spending by collecting an ever extending 99 weeks of unemployment insurance?

At this point, all we have received are those “shovel-ready” road fixing government “chain gang” jobs to upgrade our national infrastructure. But where are the private sector knowledge based opportunities that were so indicative of the 90’s high tech boom and an emerging college educated work force?

It is no secret that many successful companies are reporting excellent financial returns … and they are doing it with fewer workers, thereby driving American productivity to record highs. How nice... but why aren’t American companies hiring. The unemployment rate dipped ever so slightly last week one tenth of a point to 9.1% due to a better than expected jobs report of 117,000 new jobs created. It was a modest report that did little to quell the free falling stock market and the high level of uncertainty that is handcuffing American business. It is a climate caused by this President’s continual threats to raise taxes and increase Employers health care costs through the oncoming national Obama care program. It is a formula that falls altogether short of what is needed to reverse the trend of our “jobless” recovery.

We have waited eagerly for some semblance of leadership from our President and/or anyone from the administration with experience in job-related economic matters. Unfortunately we can’t hold our collective breath while Rome continues to burn and the current administration “fiddles” around without viable ideas or proposals that could work.

We can probably all cite the ghastly numbers relating to the job market… 13.9 million people unemployed; when the underemployed and the discouraged are added to the numbers, the unemployment rate rises to 16.6% (from the actual reported 9.1%). Teens looking for jobs this summer faced one of the toughest job markets in 60 years. Their rate is close to 25%.
But I want to offer some simple advice to the political class along with solid business axioms that have actually worked in the past:

1. Tell the truth and stop playing the class warfare card with the American people!
Government doesn’t create the type of jobs that are needed in a free market system, but the private sector does. Public and private companies need to be engaged in producing goods and services that are of a marketable nature. Many of these companies are very entrepreneurial in nature and operate small businesses, a key engine of job growth in our economy... These are the very people Obama continues to pick on as wealthy millionaires driving corporate jets and walking away without paying their fair share of taxes. Never mind that the top 1 percent of income earners paid 38 percent of all federal income taxes in 2008, while the bottom 50 percent paid only 3 percent; .Forty-nine percent of U.S. households paid no federal income tax at all and the top 10% of wage earners pay 71% of federal income taxes. Those are the hard cold facts and the dirty little secret that our politicians fail to point out. It kind of changes the notion of “fair share”

2. Relieve businesses of the enormous burden of costly Government regulations that stifle job growth.
As part of an ongoing debate, small business owners have spoken of the devastating impact the tsunami of Obama Administration regulations is having on their ability to grow and create jobs. They are far too numerous to mention here but just turn to the EPA to get the picture. It really defies all common sense that the EPA would move forward with instituting some 30 new costly regulations and not take into account any job losses that will be a direct result.

3. Create incentives for businesses to loosen up that cash they are sitting on and begin hiring workers.
Institute immediate tax credits for any Company hiring workers over the next year. This would help defray the costs and allow government to participate in the private sector job engine.

4. Allow companies to bring in workers who are being paid unemployment insurance at no cost to them.
This would tie in to the very successful welfare- to-work program initiated during the Clinton Administration (Democrats do have it in them to expect some return for entitlements). I can speak from personal experience that being unemployed creates not only financial hardship but a psychological barrier. Work is intrinsic to our human need to contribute to our families and society. A pattern of unemployment is destructive to this very fabric of life. The longer someone is unemployed, the harder it is to return to the work force. Can you imagine how many businesses could use the extra help if it is being subsidized by Uncle Sam? Those workers could even end up gaining full employment by virtue of their visible work ethic. It is a “try before you buy” scenario that currently works today in the temporary employment business. We have that ominous sign of 13.9 million people collecting money for up to 99 weeks with more talk from our political leaders to extend it. These “99ers” need an incentive to lead productive lives until jobs become available.

Those are some ideas, Mr. President! Please stop blaming the Bush tax cuts, the Tea Party, S&P, etc. and come up with a plan. Try not to speak in platitudes like a college professor. You don’t have to walk on water, just get out of the boat and get wet. That’s what true leadership is about.