We anticipated, waited, and listened intently to President Obama's State of the Union address to Congress. There is no question the President inherited a recession and near economic disaster. But he has been in office for over a year now and we all expected some positive results on employment - especially when the administration promised a net increase of 3.5 million jobs for $787,000,000,000 - the cost of the American Recovery and Reinvestment Act (ARRA). The fact is, according to the Bureau of Labor Statistics, we have 5.2 million fewer people working at the beginning of 2010 compared to the beginning of 2009.
The administration's own report towards the end of last year (before they stopped issuing monthly reports) stated that 640,000 jobs were added or saved last year because of ARRA. If that was correct, then it cost the taxpayers a little over $1.2 million per job. To be fair, many ARRA projects are just getting underway, so if the projected 3.5 million jobs are actually added or saved then those jobs would "only" cost $225,000 a piece. Still an outrageous amount (if they materialize)!
Yet even the smaller jobs created/saved number for last year is suspect. Here in Colorado, for an example, Teletech reported last year that they added 4,231 new jobs from an ARRA contract award. That number was subsequently reduced to 635 full-time jobs because the rest of the jobs were temporary - less than two month - jobs. It was further reduced to only 34, because 601 jobs were actually added in other states. This places all of the administration's jobs numbers in question.
The government is very good at creating jobs for one (industry) in particular - the government, both federal and local. But this is exactly where we do not want jobs added, since our national debt is sky-high and rising, and most states are running massive deficits. We need jobs added in private tax-paying enterprises - hiring tax paying citizens.
So how do we start the new (meaningful) jobs engine? Like most Americans, I want our President to succeed - because as noted in the State of the Union address, it's not an I win, you lose - you win, I lose game we want to play. If the administration gets it right we all benefit. The President is correct to focus on small businesses, which have accounted for two-thirds of our job growth over the past 15 years and contribute one-half of our gross domestic product. His plans for tax credits and a shift of $30 billion to community banks for small business financing seem to be on track, but this should not have taken a year of pain and citizen uproar to enact. His freeze on all budgets of the executive branch (excluding Medicare, Medicaid, Social Security, Defense, and Education) amounts to nothing more than a pinprick in the massive federal deficit.
What the President was spot on in his address, is the need for more and better education. We must bring back an emphasis on math and science to maintain our position vis-à-vis other economically powerful countries. Pell grants and other student loan guarantees are needed, but the "forgiveness" of student loans after 20 years seems more like a slight-of-hand. If the government wants to contribute to higher education, grant the money up front for successfully completing courses - not some complicated scheme of writing off loans down the road. What does that teach our students? And we as a country (politically correct or not) need to realize that not everyone wants, or has the aptitude for, a four year university education. That it should be perfectly acceptable for people to elect to be trained in a trade - and encouraged like they do in Europe and other parts of the world. These students need access to government guaranteed loans to develop these meaningful careers, as well.
Women are now getting 2 out of 3 college degrees and outnumber men on campuses. It is projected to further intensify in the next decade, with women getting 3 out of 4 degrees. Women are now one-half of the workforce and start two-thirds of all new small businesses. So naturally the President must include women's groups in his small business planning initiatives - and as he noted in his address, get women the equal pay they deserve.
The President, we hope, will keep pushing these promised (new) initiatives until they become law. And not lose sight of the focus the people have demanded - jobs, jobs, and jobs!
Richard S. Pearson is the Author of 5 Necessary Skills to Keep Your Career on Track. He has held vice-president positions with four multibillion dollar travel industry companies and three Internet early stage companies. He has a BA degree from Regis University in Organizational Development. His experience has given him a unique perspective on how to navigate the organizational structures of both large and small companies. He has hired and trained hundreds of employees from frontline salespeople to vice presidents, and coached many through their careers. He is currently working on facilitating the large increase of travel between the US and China, which is taking place.http://www.5necessaryskills.com Article Source: http://EzineArticles.com/?expert=Richard_S_Pearson |  |
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