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How would you solve our unemployment problem?

ButtercupButtercupPost Master
http://money.cnn.com/2010/07/0...ne_forever/index.htm

From the article:

quote:
"The job losses during the Great Recession were so off the chart, that even though we've gained about 600,000 private sector jobs back, we've got nearly 8 million jobs to go," said Lakshman Achuthan, managing director of Economic Cycle Research Institute.

Excluding temporary Census workers, the economy has added fewer than 100,000 jobs a month this year -- a much faster and stronger jobs recovery than occurred following the last two recessions in 2001 and 1991.

But even if that pace of hiring were to double immediately, it would take until 2013 to recapture the lost jobs. And the labor market very likely doesn't have years before it gets hit with the shock of the inevitable next economic downturn.



quote:
It would take the creation of 10.6 million jobs immediately for the same percentage of the population to be working as was the case three years ago.

Of course, it will take time to create jobs. If it takes three years, more than 3.5 million additional jobs will be needed because of continued population growth.



Now...

14.6 million people are now out of work (8 million of those jobs were lost during the Great Recession) and the unemployment rate is 9.5%.

So how do we fix this?

Many of you will say the government needs to move out of the way and allow the free market to create all the jobs. Okay, but in what sector and why aren't jobs being created now?

Let me guess: Businesses need tax breaks to create more jobs, right? Well my answer to that is business owners and potential entrepreneurs can't predict with 100% accuracy what kind of taxes they'll pay in the long term no matter what (administrations change, you know).

And...

Existing companies came into this recession with huge cash balances. Translation: They've got the money to expand and hire now, so why aren't they? The fact is they are still hoarding their cash and giving pink slips and/or cutting hours and benefits to save more cash. They can't be waiting on tax breaks to expand.

More to think about...

Many educated professionals lost good-paying jobs in this recession. They have been left with no choice at this point but to apply for jobs they are overqualified for and are being turned down due to lack of hiring or fear the overqualified applicant will walk when the economy turns around.

Those who have accepted lower paying jobs are struggling. As an example, let's say Mr. Johnson used to make $40/hr before the recession. Now the only jobs he's being offered are for $8.00/hr. How does he pay bills on that? Who on earth can live on such a paltry wage in 2010? And this is happening; it's a story that's playing out over and over across the country.

(I'm not saying that anything LESS than $40/hr. is a paltry wage. I'm talking about someone whose education and experience is commensurate with that salary, as an example.)

So, please, enlighten me with your answers/suggestions to this crisis.
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Ronnie P.Ronnie P.Old Faithful
I have one suggestion from talking with our CEO. Business is good but there isn't a lot of confidence. Say for example one of our main buyers goes under. Even if our business is well run we are relying on other companies.

There are also unknown costs down the road. Our utility bill for example is 300,000 on a normal month. A commercial rate hike or a energy tax would probably put us under. They are in a game of pennies.

They also don't know how Obamacare will effect them. A big hit there could also make it more profitable to produce our product in another country.

So it's the business atmosphere that is the problem. No one is willing to take a chance. They don't feel like this is a business friendly situation with the uncertainty and the possibility of skyrocketing energy and health costs.
H HadEnough (Guest)
I know how we could help it in Alabama. Big Grin

Build Casinos all along Mcfarland Bottoms.
Just think of the work that would generate here, construction workers, Hotel managers, waitress, bartenders, dealers, houskeeping, Valet parking attendants, ****tail waitress, Security Guards, cashiers, and the list goes on. Wink
Flatus the AncientFlatus the AncientHall of Famer
quote:
14.6 million people are now out of work (8 million of those jobs were lost during the Great Recession) and the unemployment rate is 9.5%.


Actually, the number is a bit higher!

quote:
We can now say that the current recession has sunk to a level even worse than the horrible early 1980s recession, as measured by one indicator: The broadest measure of U.S. unemployment -- which includes unemployed and underemployed Americans, as well as discouraged workers -- rose to 17.5% in October, according to data compiled by the U.S. Labor Department. The previous high was 17.1% in December 1982, The New York Times reported.

The index, statistically known as "U-6," totaled 17.0% in September and 16.8% in August; that's up from 12.0% a year ago, in October 2008.
http://www.bloggingstocks.com/...ate-hit-17-5-in-oct/

As for what to do, I'm afraid it will take time, sweat, and patience to get out of this mess. I suspect that any quick cure will be like a fad diet and only make things worse.
seeweedseeweedOld Faithful
Clues from the Great Depression may help. Jobs programs like WPA to build high speed rail, and even that Mexican border fence could be of benefit, but until we, in this country, decide to produce goods again, no full scale recovery is going to be possible. I therefore think we should make it economically not fesable for a company to produce products in another country and ship them here. As long as health care cost are being borne by businesses it is a lot more difficult to compete with other countries, so I think we should make available a single-payer health care .
In the end, since this is a global problem we shouldn't look at it like it is going to be over soon.
One thing that really bothers me to have to admit, but obsession with the national debt at this point in time is actually going to hurt. Happened during 39 so we know what can happen if it is too much of a worry. I hate to have to admit that fact because I hate debt so much, but we are where we are.
Taxes? , hell, we have the lowest taxes we have had since Harry Truman was president, and it would appear low taxes ain't working now.
In the meantime, while we are trying to find our way in the night, we should re-regulate the financial industry to keep them from playing the shell game they were playing before it all went south.
One thing more as it relates to manufacturing: We have a problem - we need energy more and more
There is a green solution- Solar and Wind
There is a country capitalizing on that need right now- China
NOW THE REAL QUESTION -- WHY IS IT NOT US?
In fact , we don't even lead the world in battery research for electric cars. WHY NOT ?
ButtercupButtercupPost Master
What about investing in our infrastructure? We're in need of so many repairs to our bridges, roads and sewer systems, etc. It's an investment in our future. The Chinese understand this and are making the necessary investment; why don't we?

And it seems to me that those once employed in the construction sector would have the transferable skills needed to be retrained for rebuilding America's infrastructure.
W WHHall of Famer
quote:
Originally posted by Buttercup:
What about investing in our infrastructure? We're in need of so many repairs to our bridges, roads and sewer systems, etc. It's an investment in our future. The Chinese understand this and are making the necessary investment; why don't we?

And it seems to me that those once employed in the construction sector would have the transferable skills needed to be retrained for rebuilding America's infrastructure.


There is infrastructure work going on right now. It is mostly being done by Hispanics.
The construction company however is getting rich.

As long as our govt. has no requirement to be a LEGAL citizen it will continue this way.
elinterventor01elinterventor01Post Master
quote:
Originally posted by Buttercup:
What about investing in our infrastructure? We're in need of so many repairs to our bridges, roads and sewer systems, etc. It's an investment in our future. The Chinese understand this and are making the necessary investment; why don't we?

And it seems to me that those once employed in the construction sector would have the transferable skills needed to be retrained for rebuilding America's infrastructure.


The original stimulus plan, $787 billion, was supposed to go for shovel ready infrastructure projects. About half of the funds are still unspent. However, little has gone for infrastructure. How about using the available funds for that?

As to China, their chief auditor reports that provincial unfunded internal debt is about $1 trillion. That's almost their entire foreign currency and bond reserve.

Japan tried massive infrastructure spending, including dozens of bridges to nowhere. Results were a decade of decay and stagnant economics. BTW, some of my Japanese friends say the construction is subpar. Wouldn't want to be near them in an earthquake.
S SHELDIVRPost Master
Too many are trying to solve the unemployment/economy problem without the knowledge, qualifications or full understanding of what it entails. The fuel for this fire was lit in the early 1980s, when industry decided that we should export all of our "heavy industry"/manufacturing and become a "service" economy. The result was to put the American worker out of work, make their product in a low paid foreign location and then "import" it to America to sell to their former employee who now punches the time clock a Wal Mart or draws a government check. Now the REAL problem hasn't arrived yet...when the economy is in total ruin/collapse and the "Great Depression" starts looking like better times, our government will be out of money because the tax payers will be out of money/work and China and Japan will cut off our line of credit. Total economic collapse looms for our nation.

It is difficult if not impossible to fix that which is broken and the people tasked with saving the nations economy/workers do NOT have a clue where to begin...they think they "pulled the American economy back from the brink" POTUS
D dntblnkEverybody Knows My Name
* Quit giving jobs to Illegals - almost all their wages are sent back to families across the border and spent elsewhere.
* "Work For Welfare" Program - because the jobs that are out there Illegals are getting because our own people are too lazy to work when they are getting free cable, food and paying $50/month rent.
* Give better tax breaks to small business, not big business.
* Don't lend money to small businesses that have no means of capital to support tough times.
* Create more jobs within Government instead of cutting government jobs and allowing lateral moves from within, from position to position, without ever bringing in any new faces/jobs. Government creates jobs = more people work for the government = more people spending money = more people paying taxes = more government funded programs = government creating even more new jobs.
Flatus the AncientFlatus the AncientHall of Famer
quote:
Clues from the Great Depression may help. Jobs programs like WPA to build high speed rail, and even that Mexican border fence could be of benefit, but until we, in this country, decide to produce goods again, no full scale recovery is going to be possible. I therefore think we should make it economically not fesable for a company to produce products in another country and ship them here. As long as health care cost are being borne by businesses it is a lot more difficult to compete with other countries, so I think we should make available a single-payer health care .
In the end, since this is a global problem we shouldn't look at it like it is going to be over soon.
One thing that really bothers me to have to admit, but obsession with the national debt at this point in time is actually going to hurt. Happened during 39 so we know what can happen if it is too much of a worry. I hate to have to admit that fact because I hate debt so much, but we are where we are.
Taxes? , hell, we have the lowest taxes we have had since Harry Truman was president, and it would appear low taxes ain't working now.


I doubt that we can have the same outcome if we try to redo the 1930's and 40's. There was this thing called World War Two when the Europeans and Asians decided to kill each other off. It helped get us out of the depression by employing all able Americans to produce war goods and serve in the military. The only problem is that the world now has these things called nuclear weapons and ICBM's.

As far as Truman's taxes, the USA came out of WW2 with newer, more productive, and intact factories and infrastructure while most of the world was wrecked. We had no competition like we do now for 2 to 3 decades. Any excess cost in manufacturing like a carbon tax gives the board of directors of any corporation another reason to move a factory to another country.
gracies old mangracies old manPost Master
Lots of reasons we're in this mess, but we will never get out of it with the mindset of this current administration.
This is the most inexperienced prez in most of our lifetimes and to compound the situation, he's surrounded himself w/ inexperienced, incompetent, left wing (Marxist, Socialist) clueless idealogues. Most every bill they pass and decision they make goes against the wishes of most Americans.
Uncertainty, the promise of higher taxes and higher energy cost is scaring businesses and potential employers.
seeweedseeweedOld Faithful
quote:
Originally posted by Chuck Norris:
quote:
Originally posted by seeweed:
In fact , we don't even lead the world in battery research for electric cars. WHY NOT ?


Physics.

High-quality batteries store only 1% as much energy as gasoline, pound for pound. Cheap lead-acid batteries store 1/1000 as much.


Seems like an opportunity for a great deal of improvement battery research and development.
We should be doing this here and not in the Orient.
seeweedseeweedOld Faithful
quote:
Originally posted by gracies old man:
Lots of reasons we're in this mess, but we will never get out of it with the mindset of this current administration.
This is the most inexperienced prez in most of our lifetimes and to compound the situation, he's surrounded himself w/ inexperienced, incompetent, left wing (Marxist, Socialist) clueless idealogues. Most every bill they pass and decision they make goes against the wishes of most Americans.
Uncertainty, the promise of higher taxes and higher energy cost is scaring businesses and potential employers.

Why not criticize the administration that led us into this mess instead of the one who inherited it.
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