Jobs: What’s The Answer?

In the afterglow of the Iowa straw poll this past weekend, it seems that Michelle Bachman’s bar-b-que was tastier than that of her competitors, her tent teeming with celebrities like Randy Travis----and it was these critical factors of leadership and organization which allowed her to “win”.

Had 75 of so of her supporters swung to Ron Paul, it would have been Paul who would have taken the day. Ron Paul may be the only common sense Republican candidate, but his drastic views regarding economics (he would have the U.S. default) and foreign affairs (he would make America the ultimate isolationist state) all combine to make him not only unelectable, but also “un-nominate-able”. Republican strategist Mike Murphy warned everyone not to read too much into the Iowa results, stating that he could have garnered “a thousand votes against algebra” in this straw poll.

The economy is driving the election—and the conservative right is actually relishing the sluggish recovery as their only means to grab the reins of power in 2012. Think about it.
Many on the right are actually rooting for American turmoil in order to make Mr. Obama as Ms. Bachman would screech, “a one-term President”.

Great. Then what?

Ask anyone who laments the economic situation—and the topic always turns to unemployment. It’s all about jobs.

So, let’s get a handle on just what we’re talking here.

In 2009, the total U.S. workforce was estimated to be about 155 million people. Since there is always an unemployment baseline of about 5-6%, a 9% unemployment level works out to be a marginal rate of about 4% (rounding up) of what the average low threshold would normally be.

Never is unemployment 0% or even 1 or 2 %. About five or six percent unemployment takes into account those in transition between jobs at any given point in time and also the portion of the population that may be considered “chronically unemployable”—for many reasons, none of which have to do with the state of the economy.

So, 4% of the workforce is that portion of the unemployment picture on which the focus needs to be. This (using 2009 figures) represents about 6 million people—or 120,000 per state.

OK, now that we have the magnitude of the problem defined, the question remains:

What to do?

While the current administration will never get any credit for AVERTING a major economic catastrophe (picture President Bush playing the violin while the U.S. economy burned), he can no longer pin the blame on the former Chief Executive, either.

Imagine “President McCain” allowing General Motors to die-as he would have. Vice President Palin (it hurts just to see this in type) would have been right there supporting McCain in his “let the market decide” philosophy. What would unemployment have been like if GM had NOT been rescued?

But I digress.

To state that our problems would not be solved overnight is one theme that was repeated, but an impatient populace can’t take solace in an extended time frame when the rent is due this month.

So again, back to the White House. What can ANY President do?

Dismiss the vacuous charges of “lack of leadership” coming from conservatives. Ask the prospective Republican candidates exactly WHAT they would do?

It’s likely that the three major things would emerge:

1) Cut government spending
2) Cut the corporate income tax
3) Repeal “Obamacare”

The underlying theme is hard to miss. Give business what it wants and the collective business community will reward America with expansion and jobs. This would make sense if the evidence to the contrary were not so glaring.

While American business has been doing relatively well (last week’s volatility notwithstanding due to the debt ceiling crisis)---Americans themselves have not. Many companies are reporting record profits. Many of the companies who preyed on consumers and helped to cause the housing and mortgage crisis are doing just fine now—while their former customers have foreclosed and are either in personal bankruptcy or crawling out.

These companies that ship jobs overseas, who send their cash to accounts in the Cayman Islands to avoid U.S. income taxes, who enjoy the full benefits of the many tax breaks, subsidies and other federal goodies—still manage to complain about the tax rate. They conveniently blame “Obamacare” as the sole reason they are not hiring, when the reality is that they have learned to produce more with an overworked and underpaid workforce afraid of losing their jobs.

It’s a perfect storm of perceived hardship that can be leveraged for further federal concessions.

It’s no wonder that big business almost invariably favors the Republican candidate in any political race. While the Democrats have been seen as the party of the indigent and dependent (which is true), they are also the voice of a middle class that is seen as increasingly invisible—because they don’t work the levers of government by orchestrating who gets elected via massive campaign cash.

So, if massive cuts that hurt the poor and elderly get blocked by Democrats in the Senate, if the repeal of Obamacare (seen as virtually impossible by strategists on both sides of the aisle) fails—and efforts to cut corporate taxes likewise get bogged down in Congress, what’s left in the Republican toolbox?

Enlighten us. Mr. or Ms. Republican President…what EXACTLY would you do?

They can’t, because they haven’t a clue. Democrats don’t either. The system is broken because rational thought rarely accompanies public policy.

Vested, special interests—and their cash to buy political office—are the major force in influencing the direction of the country.


A President who seeks compromise is ridiculed by an opposition that refuses to budge—and pilloried by his own party for being “weak” and giving away the store.

Maybe there is one man or woman who can truly bring everyone together—but the poisonous atmosphere in Washington makes that likelihood remote. Winning trumps governing—and America is paying the price.


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