CapitalistMarks

Unemployment. D.C. doesn’t seem to understand how severe the problem is. You and I do!

Posted on 07. Oct, 2009 by scott in economic daydreaming

Wake up and grow up fast, Mr. President.  Hear that?

Houston (and Washington) we’ve got a problem.

I have been writing about the unemployment problem for, well, like . . . forever.  Today for the first time I heard that the Guy in the Oval office is floating the idea of a THIRD stimulus just to work on it.  Problem is that the elements of the stimulus he is suggesting, like extending unemployment benefits, don’t really address the problem.  They do pay off voters though (is he thinking about the mid-term election next year?).

So far we have had two stimulus packages from the White House and our beloved clowns in congress.  The first was for about $170 billion (put some $$ in our pockets too) and the second was about $760 billion (stretched out over three years and more).  Man, these guys spend $$ like an NBA star in their favorite bar!  Close to $ 1 trillion and what do we have to show for it?  Unemployment at 9.8% and rising.  What happened to the 8% max that Obama promised if we got the second stimulus?  Fifteen million of our neighbors and friends out of work.

Last month we lost 263,000 jobs and the unemployment rate only went up 0.1% .  You can believe that if you want but I think the dudes calculating this are stretching credibility.

Look, our economy needs to generate 100,000 jobs every month just to break even (due to organic growth in the labor force).  So losing 263,000 jobs really means that we fell behind last month to the tune of 363,000 and that sucks!  Based on that, next month we should hit or exceed the critical 10% rate and that will really suck!

From day one of this employment crisis our Chief Executive (including the Treasury and Federal Reserve) has done his best to approve plans that line the pockets of Wall Street and other financial firm’s executives.  The little guy really hasn’t benefited in proportion to actual need (and maybe not at all).

Talk about change.  Every stimulus should be focused on creating jobs– today . . . and it can be done.  Obama and his left wing crew have to loosen their tight-wad philosophy on ‘green-ness’ and create jobs for the greater good today.  Green can become a greater focus when the economy comes rolling back.

How?   Allow drilling and exploration in promising but environmentally controversial sites would help.  That would create a few hundred thousand jobs in about a month.  Start fixing/replacing our out-of-date bridges and dams.  There is another few hundred thousand jobs in the same month.  Eliminate the capital gains tax completely.  That stimulus  big and small business alike and would generate a few hundred thousand more jobs, but it would take 6 months or so to see them.  Fix our railways and bring them into the 21st century . . . say a million more jobs.  Pour billions into research in energy alternatives with bonuses for rapid implementation . . . here comes another million jobs.  And so on and so on.

Talk about change?  Hey, Washington D.C. change to thinking about us tax paying citizens.  Change to jobs not pet ‘green’ projects.

And, but the way we need stimulus that is not charity.  Paying out billions in more unemployment or sending checks for $600 per person thru the mail just won’t do it.  Any new money that is spent needs to go to jobs, not charity or transparent attempts to ‘buy’ votes and make us feel good for a month or two.  Spend the money for long term benefit of us voters!  If we are all smart we would still vote out all incumbents.  Sorry but I just have to throw in that ‘lasting’ solution to our problems every time I can.

President Obama, I call on you to halt uncommited funds from prior stimulus and add a bit to that.  Then commit those funds (probably $500 billion or so) to creating jobs today or tomorrow.  Do this now.  Not after the New Year.  Not after Thanksgiving.  Not after the October recess for the underworked clowns in the Capitol Building.

The kind of stimulus I am talking about would have a HUGE multiplier affect on the economy.  Working stiffs would start to spend their money confidently and fast.  Retailers would have to add jobs to meet the demand.  Manufacturers would have to add whole shifts for crying out loud (I like that expression).  The impact on consumer confidence would be huge!  Spending in all areas of the economy would increase and withing a year we would be back on track for 3-4% GDP growth.

It is not only doable . . . it is critical that it be done NOW!

So, wake up and grow up fast, Mr. President.

Get this done now.

Thanks in advance from my unemployed next door neighbors!

badrnaseem’s photo comes from flickr … thanks

Tags: congress, job creating stimulus, President Obama, unemployment