time to get back to work yet?

by justinb 6. April 2010 09:37

The million dollar question, especially for the unemployed - is it time to get back to work yet? Is the economy finally on track for a rebound? Are employers starting to hire in gross numbers again? Whoa Cowboy, that might be just a tab bit Pollyanna-ish. On the other hand, the latest job market indicators show a big increase in jobs added to the payroll, about 142,000 or so - to be a stickler for detail. So what's the big deal about 142,000 jobs when well over 15 million are still unemployed. Moreover, more than 40% have been unemployed for 6 months or longer. Well the 142,000 jobs added in March, in of itself, should be enough to rave about considering the seemingly endless bad news month in and month out about job losses.

With good news like the March job report, it just begs the question is it real or a false alarm? Can we expect more good news on the job market front in the months to come? Well, first off the fact of the matter is that 142,000 new jobs added in March is a little misleading, since just over 40,000 of those jobs relate to the US Census project. In case you didn't know the fast majority of those hired for the US Census project are part time and/or temporary positions that will expire before years end. A few will convert to permanent roles but most won't. Nonetheless, the March job market news seems good enough to light a spark on the Wall Street DOW which is looking to cross the 11,000 marker, fueled (at least partially) by the up beat job market news.

So it looks like the old adage hold true, in that - we will have to "wait and see" if the Wall Street and job market rallies will prove to be a huge prosperity wave or just a teaser wave. Of course, the more than 15 million unemployed are more than eager (rightfully so) to ride a new wave of prosperity. That is especially true, since Congress decided that the 200,000 plus job seekers who lost their benefits as of April 5th, 2010, weren't important enough to push an unemployment extension bill through before going on spring break. So while Congress goes on spring break with their families, eat and be merry - 200,000 plus unemployed get to go and pander around with a soup can. Oh and you can thank Senator Coburn for blocking the unemployment extension bill. So once again, is it time to get back to work? Well i think everyone would overwhelming say yes. The question is does the job market agree? We shall see.

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health care jobs and the jobless

by justinb 12. March 2010 14:56

The recent passage of the Senate health care bill paves the way for an up or down vote on health care reform. The million dollar question is what effect would health care reform have on creating new jobs and reducing the alarming jobless rate.

With more than 15 million Americans still out of work, you would think health care reform would be welcomed with open arms. Why? For starters history shows us that sweeping regulation almost always leads to job growth. So then why all the health care opposition? Well, history also shows us that lack of knowledge promotes fear which in turn equals opposition. Considering the government in general is not necessary recognized for efficiency, people naturally tend to think that health care reform would equate to inefficiency and inept medical treatment. The ironic part is just how efficient is health care, as is, today? With current overpaid overpriced health care treatment by medical workers with dollar signs in their eyes, you're lucky to not have a knee scape cost you a few thousand dollars. On top of that, with more and more doctors looking to deflect incompetence with medical malpractice insurance and civil damage jury award caps, its a no-brainer that medical treatment for most non wealthy Americans is an "at your own risk" encounter.

Sure, the Feds could and should do a great deal more in ensuring that if health care reform passes that it does not become a boondoggle. Even so, leaving the current system as is and allowing the burden to grow on society, in the form of uninsured treatment hidden coverage hikes, is simply foolish. As the old saying goes, there is no free lunch. You either pay now or you pay later - but indeed you do pay. All things considered it's probably better to pay a known fixed price that to keep dealing with hidden surcharges and fees that line the pockets of health care administrators under the guise of "increasing administrative costs."

Equally as important if not more important is that jobs will undoubtedly be created through revamping the health care system. The only question is how many jobs? You can bet there will be more than a few jobs necessary to implement the new infrastructure to support the system as well as people to manage it. So with all the training and implementation required you can expect long term jobs from health care reform for years to come. In essence, health care reform will create jobs and drive down the massive jobless figure of over 15 million unemployed. Of course, health care alone won't be enough to bring the unemployment rate in line with say 5% but its a solid start. Moreover, its probably the best idea on the table yet. That is, unless, you're one of those who favors reducing taxes on wealthy, thereby increasing the need to borrow and further inflating the national deficit so that China will own more and more of United States future. Now that ought to alarm folks more than health care reform. Sealed

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federal salaries increase while economy drags feet

by justinb 17. February 2010 09:57

As the economy continues to shrug off the Billions of dollars in economic spending, it raises the question -- just what exactly is the answer? Well, that depends on who you poise that question to. A least a few patriots of the Right believe that President Obama has a grand plan to absorb the multitude of unemployed under the Federal umbrella as Federal employees.

So is there any data to support the position of the Right or simply more political rhetoric? Well, apparently the average salary of a Federal employee is $71,206 compared to $40,331 in the private sector. Additionally, purportedly, those earning the coveted six figure salary -- $100,000-- has increased from 14.4% to 19% during the recession! Moreover, there are more than 10,000 Federal employees earning $150,000 or more. Stunning stats huh. Maybe - maybe not, it's necessary to look at the entire picture before making that determination. A simple math calculation of the stated figures illustrates Federal salary spending increases amount to under $2 Billion annually. Even if you want to round it up to a nice even $5 Billion in Federal salary increases that is lunch money in comparison to the national GDP -- as well as the Federal budget for salaries. So does that advocate increased Federal salary spending during a recession? Well you would have to compare that the private sector, too, in order to make that determination. So what exactly has the private sector done in terms of reviving the economy since the recession began? ...well the votes are in and it's not looking good for the private sector. The fact of the matter is that the private sector hasn't done much. Well that's not entirely true...wages have decreased to a 30 year low, we are experiencing unprecedented long term unemployment, layoffs and job eliminations continue to rise albeit workplace production output continues to increase as well.

Making a case against the Feds stepping up for American workers during the Great Recession while the private sector reaps production output gains at the expense of job eliminations is a hard sell. Moreover, for those on the Right that have amnesia, maybe, perhaps they should be reminded of the untold Billions expended under the leadership of former President Bush. What's the difference in the scenarios? Well under the Bush era the Billions in Federal spending were directed to the elite such as former Vice President Cheney and the no bid contract awards to Halliburton. How about the Oil Bigwigs who still have their feet on the table with the back door deals under the Bush era? Conversely, the Obama administration appears to favor the average Joe Federal employee and working class individual.

The bottom line is that there is no free lunch and someone has to do something about the ailing economy. The President appears to be sending the message that if the private sector wants to exploit the economic situation than payment is going to made on the back in versus  on the front. In other word, you pay now or you pay later...and judging by the way the credit industry works the private sector is better off paying up front versus paying later. In essence that means the private sector can pick up hiring and keep taxes at status quo and maybe even get a tax cut or continue with the exploitation charade and pay higher taxes on the back end. Decisions, decision, decisions. So maybe you can complain that Federal salaries increase while the economy drags it's feet, but hey somebody has to do something. Moreover, it's a fundamental principal that the Government should do what's best for the nation as a whole versus the single sided view of the private sector. So, to make a case against Federal spending on salaries -- to the private sector, the well over 15 million unemployed say -- show me the money or better stated show me the jobs. Money mouth

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