Can Anyone Fix This Economy?

Read Mitt’s plan then read Barack’s plan. If it’s “the economy stupid” then where is the plan to set the nation on a course to recovery?

The number of new employees added to the job payrolls has been less than breathtaking. With 5 million long term unemployed is anything other than low pay service sector jobs going to be created in the coming years? The number of new June jobs is 80,000. The unemployment rate remains at 8.2% for a second straight month. That is less than the number required to keep pace with our growing population according to most economists. Perhaps the better question to ask is what are the plans of the two candidates for president?

From Mitt Romney’s campaign web site.

Mitt’s Plan

Mitt Romney sees two important objectives that America can pursue immediately to build on the extraordinary traditional strengths of its workforce. The first is to retrain American workers to ensure that they have the education and skills to match the jobs of today’s economy. The second is to attract the best and the brightest from around the world.

Retraining Workers

Mitt Romney will approach retraining policy with a conservative mindset that recognizes it as an area where the federal government is particularly ill-equipped to succeed. Retraining efforts must be founded upon a partnership that brings together the states and the private sector. The sprawling federal network of redundant bureaucracies should be dismantled and the funds used for better purposes. One particularly promising approach that Romney supports and believes states should be encouraged to pursue is a system of Personal Reemployment Accounts for unemployed individuals. These accounts would facilitate programs that place individuals directly into companies that provide on-the-job training—as governor of Massachusetts, Romney helped create just such a program.

Eliminate redundancy in federal retraining programs by consolidating programs and funding streams, centering as much activity as possible in a single agency
Give states authority to manage retraining programs by block granting federal funds
Facilitate the creation of Personal Reemployment Accounts
Encourage greater private sector involvement in retraining programs

Attracting the Best and the Brightest

To ensure that America continues to lead the world in innovation and economic dynamism, a Romney administration would press for an immigration policy designed to maximize America’s economic potential. The United States needs to attract and retain job creators from wherever they come. Foreign-born residents with advanced degrees start companies, create jobs, and drive innovation at an especially high rate. While lawful immigrants comprise about 8 percent of the population, immigrants start 16 percent of our top-performing, high-technology companies, hold the position of CEO or lead engineer in 25 percent of high-tech firms, and produce over 25 percent of all patent applications filed from the United States.

Raise visa caps for highly skilled workers
Grant permanent residency to eligible graduates with advanced degrees in math, science, and engineering

Barack Obama jobs plan is not posted on his campaign web site. Instead his site points to the growth of jobs and offers these successes and plans.

Barack’s Plan

 489,000: Jobs added in the manufacturing sector since January 2010

 233,000: Jobs added in the auto industry since June 2009—the most growth in a decade

 100%: The percent of investment in plants and equipment that businesses could expense under a tax cut extension President Obama proposed, which would spur investment in the United States

 18%: Tax deduction President Obama has proposed for domestic advanced manufacturing technologies—which would double the current 9 percent deduction

 20%: Income tax credit the President has proposed providing to companies on expenses related to moving operations back to the United States

Neither candidate offers any idea to re-employ those middle class wage earners that have faced a devastatingly long unemployment period. As matter of fact no one has offered one sensible plan. If Mitt Romney believes that the independent voters will elect him to office by just saying Obama has failed to re-invigorate the economy he is not likely to gain my support. He should not gain your support either. Vague references to re-training programs when the there are no growing industries are not enough.

If my choice is between just another face and no plan then I will vote for Obama. At least he has the experience that no other job in the world can provide. Then again why should I vote for a leader who has not been able to change our course?

Self Annihilation

We visited a Loew’s Home Improvement store to check their table lamp selection. My wife’s idea. She found precisely what she wanted. The price for each lamp was $14.97 and included a light bulb. The shades cost about the same price. The lamps and shades are made in China. It is an astonishingly low price. I would have been willing to pay twice that amount.

Can you imagine the pay rate for those working in the factory that manufactures those lamps and shades? Probably on the order of 50 cents an hour. That is the pay rate in Mexico.

So we Americans buy low cost products manufactured in China and that makes us feel good. Think about this. Those lamps and shades were formerly made in the U.S.A. We get bargains that put our neighbors out of work.

What is the American policy (or for that matter the policy in any other country) regarding the export of our jobs?

Personally I would gladly pay more for the lamps if I knew that Americans have the income that takes them off the unemployment rolls and welfare rolls. Am I wrong?

Top 20 Jobs That Don’t Require A College Degree

LAUSD plans to require all high school students to take college prep classes in order to graduate. However there are hundreds and perhaps thousands of jobs that do not require a college degree. As reported on AOL.COM here is a list of the top 20 jobs not requiring that diploma.

Careercast.com put together a list of the top 20 jobs that don’t require a college degree, ranked by average starting salary, income growth and employment growth. Income growth refers to percentage of growth from starting earnings to the top level; and employment growth refers to the projected increase in number of jobs through 2020 according to the U.S. Bureau of Labor Statistics.

1. Dental Hygienist

Average Starting Salary: $45,000
Income Growth: 109%
Employment Growth: 37.70%

2. Online Sales Manager

Average Starting Salary: $40,000
Income Growth: 255%
Employment Growth: 25.00%

3. Web Developer

Average Starting Salary: $43,000
Income Growth: 179%
Employment Growth: 21.70%

4. Medical Secretary

Average Starting Salary: $21,000
Income Growth: 114%
Employment Growth: 41.30%

5. Paralegal Assistant

Average Starting Salary: $29,000
Income Growth: 159%
Employment Growth: 18.30%

6. Stenographer / Court Reporter

Average Starting Salary: $26,000
Income Growth: 250%
Employment Growth: 14.10%

7. Heating / Refrigeration Mechanic

Average Starting Salary: $26,000
Income Growth: 158%
Employment Growth: 33.70%

8. Surveyor

Average Starting Salary: $31,000
Income Growth: 190%
Employment Growth: 25.40%

9. Executive Assistant

Average Starting Salary: $29,000
Income Growth: 131%
Employment Growth: 12.60%

10. Insurance Agent

Average Starting Salary: $26,000
Income Growth: 342%
Employment Growth: 21.90%

11. Industrial Machine Repairer

Average Starting Salary: $30,000
Income Growth: 127%
Employment Growth: 21.60 %

12. Cosmetologist

Average Starting Salary: $16,000
Income Growth: 163%
Employment Growth: 15.70%

13. Hair Stylist

Average Starting Salary: $16,000
Income Growth: 163%
Employment Growth: 15.70%

14. Tax Examiner / Collector

Average Starting Salary: $30,000
Income Growth: 207%
Employment Growth: 7.30%

15. Sales Representative – Wholesale

Average Starting Salary: $27,000
Income Growth: 304%
Employment Growth: 15.60%

16. Construction Machinery Operator

Average Starting Salary: $26,000
Income Growth: 173%
Employment Growth: 23.50%

17. Electrical Technician

Average Starting Salary: $34,000
Income Growth: 138%
Employment Growth: 1.90%

18. Architectural Drafter

Average Starting Salary: $30,000
Income Growth: 140%
Employment Growth: 3.20

19. Teacher’s Aide

Average Starting Salary: $17,000
Income Growth: 112%
Employment Growth: 14.80%

20. Sewage Plant Operator

Average Starting Salary: $25,000
Income Growth: 156%
Employment Growth: 11.60%

Jobs or Political Party – What’s Your Priority?

“Huge trade deficits cost millions of jobs, lower wages and place a massive debt burden on future generations.” –Brad Sherman, United States Congressman

Democratic Party member are not unified in many ways. The question of abortion rights is simply the most well known issue. Gay marriage rights is also another party dividing issue. However, in this era of job growth, job creation ought to be the focus. It isn’t.

In my own new California 30^th district, redistricting has resulted in two long time Democratic congressman vying for the same seat. Howard Berman versus Brad Sherman. On most issues they agree. Sherman has taken positions that have been contrary to Democratic Party leadership. He opposed TARP as it was initially proposed and, I believe, only voted in favor of the final bill when he saw the stock market decline. Sherman has also taken an unusual view of free trade agreements. He opposes them.

Brad Sherman opposes NAFTA and CAFTA because they are shipping our jobs overseas. “For too long the United States has been exporting jobs rather than products.” The latest free trade agreements are with Columbia and South Korea. His take is supportable when you look at the American trade deficit. It’s has been at or near the highest level since 2004. The amount has been in excess of $800 Billion Dollars. This is a number supplied by the U.S. Bureau of Economic Analysis.

His concern for jobs is justified. It’s not just the high unemployment rate. The employment to population ratio of Americans age 16-54 has barely begun to recover from levels last seen in 1983. That number was 68.5% in April of this year. This is a BLS statistic. Meanwhile Berman is a supporter of free trade agreements.

I have not heard or read any positions taken by Republicans on the issue of free trade. It should be a deciding factor when voting for a congressman or the president.

Decline of Manufacturing Jobs in America

The Long Goodbye: Number of U.S. Manufacturing Jobs

The graph was in Businessweek April 16-April 22, 2012. It tells the story of the continuing loss of manufacturing jobs in the United States. Those that believe that America will become a “service society” are in a dream world. No nation thrives on services alone. Actually we are already outsourcing many services to Asian countries. Dell Computer, Citi Bank, Hewlett Packard, and the Los Angeles Times are just FOUR of the many companies that have out sourced their customer service.

Notice that this graph reflects what many of us already knew. Decline in manufacturing has been a decades old event.

The Tech impact has Just Begun

When my son had his car stolen, my daughter called to say she learned about it on his Facebook page.

No one doubts that technology has impacted our way of life. Computers, television have morphed into computers, cell phones have become smart phones, tablet computers are replacing lap top computers, and music is now downloaded rather than played on CDs or records (what are records?).

Despite all the new stuff, electronic retail has seen a continuous downward trend over the last few years. First it was Circuit City that once was the largest chain of electronic stores in the nation and now Best Buy seems to be following with the closing of 50 stores by the end of this year. Six (revised to 7)in California, six in Illinois, and the balance in Minnesota (revised to 17 states and Puerto Rico).

This really is the impact of technology. Borders Books is gone and Barnes and Noble is barely hanging on. All these businesses are impacted by the internet. It’s the place I made two purchases this month from Amazon. One was a new camera (tech product) and the other was sugar bowl (that is a blow to all retail). Banking? On line.

What is the message? Retail will never be the same.

What about jobs? Many of us will be working from home.

Betty White may be correct when she said, “Facebook is a big waste of time.” Just don’t tell the millions of people who use it as a primary means of communication.

Things are Getting Better?

The unemployment rate decreased .1% last month. That sounds good but the cause was more people giving up on searching for a job. There weren’t even enough jobs created last month to keep up with increased population.

Today’s Bureau of Labor Statistics report included the following statement. “The number of long-term unemployed (those jobless for 27 weeks and over)was essentially unchanged at 5.3 million in March. These individuals accounted for 42.5 percent of the unemployed. Since April 2010, the number of long-term unemployed has fallen by 1.4 million.”

There is the problem that neither President Obama nor Mitt Romney has addressed. American industry doesn’t need most of those long term unemployed. The reason is that technology and the export of American jobs has reduced the numbers of people required in the United States.

The president’s job plan does include the following proposals
– A $4,000 tax credit to employers for hiring long-term unemployed workers.
– Prohibiting employers from discriminating against unemployed workers when hiring.
Nice gestures that do not answer the question of who will hire these un-needed people?

I have found nothing in Mitt Romney’s proposals that even suggest any solutions. His focus is on “free market.” My question is, where were the free markets under George W. Bush when the economy was in free fall?

My solution is higher tariffs on all imported products. Neither Obama nor Romney agree with that solution. They don’t have a solution!

We are Creating Jobs Somewhere

We are creating jobs in China. Well to be more accurate General Electric is creating those jobs. To accomplish this effort GE is moving their facility from Waukesha, Wisconsin to Beijing. This is Waukesha biggest employer. It’s only been there for 115 years. In addition to moving headquarters, the company will invest $2 billion in China and train more than 65 engineers and create six research centers.

This is the same GE that made $14-billion in the United States last year, but paid no taxes – the same company that employs more people overseas than in the United States.

So let’s get this straight. President Obama appointed GE CEO Chairman Jeff Immelt to head his commission on job creation (Job Czar). He is supposed to help create jobs. I guess the President forgot to tell him in which country he was supposed to be creating those jobs.

Politics Above Jobs

Today’s Associated Press headline reads “Obama rejects Canada-Texas oil pipeline -for now.” It’s all about politics not about what is the right thing to do.

Barack Obama has made the environmentalists happy but not the country. Those environmentalists are viewed as an important support group for re-election. So the gamble is we will all forget about this issue by next November.

However, if the number of unemployed Americans is still high in November the GOP won’t let us forget. Those supporting the pipeline are furious and they should be.

A $7 billion pipeline from Canada to our gulf coast will result in thousands of jobs. That pipeline will help reduce our dependency on Arab oil. Concerns about water pollution can be over come with some re-routing of the pipe.

This project was originally proposed when George W. Bush was president. To contend now that the government has not had sufficient time to review possible side effects is ludicrous. Barack Obama is on the wrong side of an important issue. He deserves to be attacked for this decision.

Jobs Should Be Job One!

Neither the president nor the ambitious GOP candidates know how to fix the American economy.

Happily the total unemployment number improved in December bringing down the percentage of those still looking to 8.5%

The BLS summary included this statement. “The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.6 million and accounted for 42.5 percent of the unemployed. (See table A-12.)”

There is the crux of the problem. Not one politician talks about this issue. No wonder. No one knows how to solve this problem.

Imagine you are 50 years or older and now are part of that 5.6 million people. Your career is probably over. If you have not found an alternate career that takes advantage of your prior experience you are most likely looking at low paying jobs in a new profession. Who is likely to hire you when you are part of the older workers group?

I have been through all of this and understand the pain. Fortunately I was able to utilize some of my prior experience. For those who cannot there is no solution.

Hoping that the government will show the way is foolish. Politics have ground the government to a near stop.

The next national election will be between “the audacity of hope” that failed and a list of GOP candidates that are focused on cultural issues.

Goodbye to America’s Middle Class!