9.8% and Counting

Week after week we see more and more jobs being lost. At least 200k jobs almost every week for months. We are up to 9.8% unemployment and that figure probably understates the actual number. The harsh reality is that these many of these jobs are not just temporarily lost but are gone forever. This trend is neither BO’s fault nor GW Bush’s as some analysts would have you believe.

Many of the lost jobs were in industries that were based on bad business models such as the auto industry where a high school graduate could get a job on the assembly line for 60 dollars per hour with unheard of benefits. This is obviously unsustainable and ultimately makes the business noncompetitive in the world market. These jobs are not returning.

Many of the jobs were in industries that were being overinflated due to bubbles. This includes the real estate business with jobs ranging from construction workers to real estate brokers to mortgage companies. Many jobs were lost here after the bubble popped and are certainly not coming back.

Many jobs were lost in the financial industry which was both a flawed business model as well as a business overinflated by the creation of debt instruments. Nothing was actually created by these companies, just the repackaging of debt and selling to the next guy. Then that guy would sell it to another guy. A huge pyramid scheme. These jobs are not coming back.

So where does that leave us? More jobs will be lost as these industries consolidate. That is why we are seeing improvement in earnings as company’s expenses are being reduced due to lower personnel cost, not by greater sales (top line growth). The economy is stabilizing but will only expand once top line growth improves which will only happen when employment improves.

A no-brainer would be to immediately encourage the production and usage of our own sources of energy. This creates new business and enlarges existing businesses in that industry. Instead of shipping billions of dollars to import energy/oil, that money could be staying here creating good paying jobs. The plan to convert all 18 wheelers to natural gas should start immediately. We have lots of natural gas and reduces our funding of despotic regimes.

The key to job growth is in new industries and small business which is being ignored by the current administration. In fact, they are being targeted for more regulation and tax increases. Small business is the generator of jobs in this country and everything should be done to facilitate and encourage their development. It is the only way to create prosperity for all of us. Energy jobs are the way to go, NOW.