What We Need Right Now Is Jobs, Jobs, and More Jobs
There is a Senate Banking Subcommittee hearing today on the US as a global competitor, and my old friend Leo Hindery is giving testimony (found in the extended entry here). I don't agree with every single point in it, but taken as a whole it is a powerful argument for a fundamentally different kind of jobs and manufacturing strategy than we are pursuing right now. Leo accurately drives home the point that every other industrialized country, including China, has an industrial policy, a manufacturing strategy, and their own version of a buy domestic policy. With an effective unemployment rate of 19% (the officially unemployed, plus those too discouraged to work and the under-employed), and manufacturing jobs continuing to be decimated, we are not going to climb out of this deep recession without getting people working again in good jobs.
A couple of especially scary things from Leo's testimony:
-a quarter of the nation's remaining manufacturing companies are now deemed severely at risk. That means that manufacturing jobs, which traditionally are not only better paying but have a bigger multiplier effect in the economy and reduce our critically important balance of payments deficit with foreign countries, could shrink far lower from it's current abysmally low 8.7% of American jobs.
-a high level Obama administration economic adviser is quoted as saying that America's export future resides in exporting "consulting and legal services, software, movies, and medicine." If that's the view of how we are going to get out of our balance of payments mess, we really are in deep trouble.
The last time our economy faced this kind of deep and enduring economic challenge, in the Great Depression, FDR understood that the only way to climb out of the pit we were in was to fundamentally re-align the way the federal government's economic policies worked, to invest in a truly bottom-up economic strategy that involved the government creating jobs and putting income into the hands of the poor, so that they would spend that money and make the economy grow again. That is what it is going to take this time. We need jobs. And then we need more jobs. And then we need more jobs. Oh, and I think we'll need more than just consultant jobs and lawyers- we will need construction jobs and road building jobs and green energy jobs and factory jobs.
The trickle down strategy of making sure the big banks are healthy so that they will lend money to everyone else? Guess what, it is not working. What we need to try now is investing in good jobs for regular people.
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Factory jobs making what? We have too much stuff already. What about jobs growing food and cleaning up the place?
Our Government hav a lot of lawyers, politicians in time when we need Scientists, Engineers and Inventors.
Even Secretary of Energy is scientists, who completely under influence of Al Gore that GHG are main players in nature of GW.
Reevaluation of science of GW could provide us with new tools to fight global warming, be energy independent, create 100% of employment during one years and therefore 100% of insurance.
We need combine our effort in these directions and put Government money for new inventions, only they could provide new high paying jobs.
Jobs like business are not created in a vacuum. If they are, they are temporary. They fit in the overall puzzle along with social mobility, technology and market trends. The best businesses solve existing problems and look to profit from finding solutions to future problems. The government can assist temporarily by creating demand and assisting in technological advancement. We have done that from the beginning of our republic.
The Conservative myth of self reliance is just that; a myth. Lincoln spurred economic growth in this country with building projects, science projects and the trans-continental railroad. That spurred on new technology and led to further growth of our industrial economy.
The best way to spur job growth is to stimulate demand and resurrect the tariff system. The U.S. Government must kick aside the conservatives and do what has worked in this country for over two centuries, put their money on the table to stimulate demand and demand that goods and services coming in to the U.S. be taxed appropriately.
Dear tdpubs:
'The U.S. Government must kick aside the conservatives and do what has worked in this country for over two centuries, put their money on the table to stimulate demand and demand that goods and services coming in to the U.S. be taxed appropriat
We have mortgage problems. It means we build more houses than incom of most buyers could afford.
We have cars problems, because most drivers can't pay for gas price.
Our economy can't be improved by stimulus money, because all of that money will go to the same-housing, cars and others overproduced goods and services.
What do you mean we don't have an industrial policy? It's called China. Of course, even China is shuttering industrial plants, thousands of them, and that's no exaggeration.
FDR was a "traitor to his class", bless him, but these days there are not enough traitors to pull of the kind of state-centered industrial job creation program necessary. Of course, the real "job creation program" was called WWII.
We are in a crisis of overproduction: too much capital with nowhere to invest profitably, too many cars, too many houses, you get the point. The whole system is highly irrational.
Good luck with reforming the system. Personally, I think we're beyond that.
Yes we are in a crisis of overproduction and only new invention could bring US economy from this.
We no need reform the system, we must invent new goods, like in information technology, my old PC still working but I bought new one with new hardware and software. The same we could tell about analog and digital, phone, camera, TV, etc
As our strategy goals:
We need to reduce size of power plants, which we will build in future to use not only electricity, but also heat energy.
We need in nearest future use electricity as only one source of energy for heating (cooling) of homes and for transportation for the same reason as for cars. It is difficult by cheapest way to sequestrate carbon dioxide from every house, but it possible for power plants. All greenhouse gases from power plants need to be solvent in huge amount of water to watering forest. Of course quality of water for watering need to be checked by scientists.
We need change transportation system.
Instead of heavy cars small carts (20 LB) which will be moved by electrical power completely automaticaly on the roads without intersections.
It will create high paying jobs, for scientists, engineers, workers and farmers, which forever will stay in USA
Let's get rid of the talk radio arm chair economists and get back to basics. Jobs do not magically appear. Jobs are created when the demand for a good or service requires more human activity. An employer who hires people simply because they want more labor in the company is a fool.
Taxes have nothing to do with it either, an employee costs too much money when demand is low and demand determines when a business adjusts its employment strategy. Saying we need more jobs is putting the cart before the horse, we need greater demand for existing goods and services and we need to stimulate a demand for new and innovative goods and services.
For the last 30 years, we grew our economy on the credit card. That allowed us to spur demand. Demand equals more sales. Giving a business a tax cut does not spur demand; its a lie perpetrated by a few who know better and fed to many who have no clue. If the U.S. Government wants their stimulus to work, they need to first reform their campaign policies and next fight corporate power to regain control of this country.
One thing that i'm convinced of we will probably never be back where people were on jobs thirty years or more. Clearly the number one thing that is bothering the american people is (no jobs), we have got to get the ball moving. I really don't think anyone has a good plan for the rebirth of employment for the american people, just a lot of talking and that is becoming cheap. Future jobs look as though, you probably won't be making 17,18, 19, 20, dollors starting off and healthcare will be a whole different subject. America has shipped the american jobs overseas for smaller wages and now we depend on foreign everything in order for the american people to have what it needs, who what have thought we would find ourselves in this kind of mess.
Think more like $7, $8 to start and maybe $12 with experience and tenure....
Corporate America found out that if they eliminate all the jobs, we will take whatever they offer as pay and hours.
"They" want you insecure and living from paycheck to paycheck without any security. You're easier to control that way.
END the H1B Visa Program now and let AMERICAN techs get BACK TO WORK!
Our problems not specialists from other countries, not globalization, but Managers, who became Menagers by school of Management.
They do not understand, how to create new ideas, new directions and always trying to make money by old ideas. It brings bubbles and overproduction in houses and cars industries.
Our Government must put money for new Inventions, not legislation.
Cut-and-trade, wind, solar cells, nuclear source of energy are disaster for Environment, but lawyers and bankers in our Government can't understand it.
Steven Chu and others scientists in Government are under influence of mistakes of Al Gore about role of GHG and properties of water in GW.
That is more dangerous situation, not specialists from others countries, which could help in any directions.
Put money for new Invention it will work better than legislation and stimulus, which help only to keep stagnation aflot.
"O"blivious is doing a Great Job of Creating Jobs . . in CHINA . . Go 4 More !!! . . with Crap & Trade
During the Clinton years, 11 million jobs were created in America.
During the Bush years, we lost 11 million jobs to out sourcing and another 8 million + to the economic crisis that happened on his watch.
He had 2 full terms to deal with this situation, but his administration touted the financial industry growth as a positive economy. That was as we can see now, a lie.
So close to 20 million lost jobs, hundreds of thousands of homes lost, the economy in the tank, and because it is not fixed 7 months into his first term, you have already blamed him for all of it?
Where were you since 2000?
Where were you the last 8 years when millions of jobs went overseas????? Now Obama in office 6 months is to blame.. psffff
We must reevaluate science of Global Warming, which take a lot of our attention, money, and activities which will bring more damage for environment, than good things.
PROPERTIES OF WATER ARE PLAYING MORE SIGNIFICANT ROLE IN NATURE THAN ALL GHG, INCLUDING CARBON DIOXIDE(co2).
If it so we must increase evaporation of water on continents, perhaps North America for USA.
The cheapest way to do that is growing forests as wood energy for small power plants. All GHG from oven we could solve in water and put back to watering these forests.
Coal right now is cheapest source of energy. We need 1.6 ton of wood to produce the same energy as from 1 ton of coal. In small power plant where we will use as electricity as heat we need at least 4 times less energy.
In this case wood will provide more usefull energy than right now coal or even oil products.
IT ALSO WILL FIGHT GLOBAL WARMING THAN ANY REDUCE OF GHG BY CAP-AND TRADE SOLUTIONS.
This direction could provide high paying jobs for scientists, engineers, workers and farmer.
THIS JOBS WILL STAY FOREVER IN USA DESPITE ANY GLOBALIZATION.
So the global water shortage be hanged, lets go back to 19th century technology?
Really?
Dear Gidster in "19th century technology" we cut trees and put wood in oven without any care about efficiency of process. We did that in every house (appartment) and mostly heat the air outside.
In small power plants, surrounding by forests we could use as electricity as heat and heat not only from oven but take all gases, which in 19 century pollute the air, solve them in water to watering these forests.(T
We will start attention how to receive from forest harvest 5-10 dryton/acres/year, how to use at least 80% of fuel energy, not 20% as right now in huge power plants, how to put all GHG from forests back to land, to create loop of using-production with ZERO EMISSION?
IT IS HIGH SALARY JOB FOR SCIENTISTS, ENGINEERS, WORKERS AND FARMERS.
IT WILL MAKE USA ENERGY INDEPENDENT.
IT WILL HELP US TO FIGHT GLOBAL WARMING WITH HELP ONLY CANADA AND MEXICO.
MRS. CLINTON WILL NOT HAVE ASK INDIA OR CHINA TO HELP FIGHT GLOBAL WARMING. ALL COUNTRIES IN THE WORLD WILL FOLLOW 19TH CENTURY TECHNOLOGY ON 21 CENTURY VISION OF THIS TECHNOLOGY.
I apologize, I lost your actual meaning in the translation.
Interesting idea!
Sorry, Mr. Lux, but if you don't represent Goldman Sachs, Obama will never listen to you. Don't believe it? Just ask Geithner and Summers.
At the height of the Great Depression we had 26% unemployment. We are quickly approaching 20% now with no letup in new joblessness claims. We need to take back the bank's bailout money and start lending it directly to business. As far as the American people are concerned, there is no such thing as a jobless recovery.
In solar cells energy or nuclear power plants we must put huge investment right now to receive profit after 10-30 years.
Understanding these factors our government must stop wasting money on wrong directions as "green", solar cells, wind, nuclear, which is not so green as advertized and will bring damage for environment more bigfger than other human activities.
In huge power plants we are loosing 80 % of energy of fuel-heat energy in vain.
If we understand this point we could start new policy to build small power plants to use as electricity as heat.
We must design these power plants and it will bring high paying jobs, as for Scientists, as for Engineers as for worker, and will stay in USA forever.
When person with weight 200 Lb is driving mostly alone to job and back on cars more than 2000 Lb real efficiency of this movement for person, not for car will be less than 1 %, if we will calculate engine efficiency, gasoline production efficiency, stopping on every light, cooling or heating inside car etc.
Understanding these facts we must create system to move person by electrical forces of the road, with roads without intersection by cart weighting 20 Lb.
Our cars Companies could provide jobs for scientists, engineers and workers working in new directions.
It could be done during 5 years and bring new high paying jobs, which forever will stay in USA.
The government need to give companies incentatives to hire people with conditions such as keeping them gainfully employed for a minimun of five years! I don't see evidence of grounds being broken to build all those "green" factories that were to be built in places like Ohio? Those green jobs along with fixing our infrastructure was suppose to create new jobs? HELLO?
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