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Saturday, March 10, 2012

The high price of jobs

Who can produce jobs?

Not the president, who has almost no immediate impact on the economy no matter how sweeping changes or reform are. Economics are far more complicated and unfold over years, decades or even centuries in our global economy.

Not the congress, although they can make the environment friendly to job creation or finance job programs and incentives.

Not the governor of a state, since state laws and constitutions vary widely and most have at best limited actual executive power.

The reality is that only business can create jobs.

And business is now sending dividends to their stock holders or investing overseas instead of investing in the American workers.

And the businesses that can create the most jobs are ultra small businesses with under 100 employees, and by individual proprietaries or small limited partnerships. Those jobs can be created quickly, but tend to be on the extreme low income level for employees and often without benefits.

The growth is in the low paying service industries and very low paying micro-manufacturing. Large corporations are not investing, or if they are they are building in areas with very low paid work forces and plenty of incentives, usually meaning even lower revenue to the state and local governments.

Just because there are jobs does not mean growth or economic health.

When Walmart comes into a community there is a short term net gain in jobs. The pay is lower and most of the jobs are part time. Over the long term higher paying quality retailers of all sized close, reducing the overall tax base since higher paid employees pay higher taxes, own homes and invest in the community.

This model is becoming true across the service and manufacturing infrastructure of America.

So, who is it that will produce the jobs Americans need, and at what price (pay level) to our standard of living, the money needed to maintain a community and the educated, trained individuals to keep things running?

Who is willing to pay the price? Who is willing to do what it takes? And can we do it in an increasingly international "lowest bidder" marketplace.

Companies go where there is profit for their shareholders. America exports gasoline to markets that will pay more for the refined product than we will at our pumps, yet we cry about high gas prices and a shortage.

We all want the cheapest products at the companies that pay the lowest wage or work part timers as if they were full time, produced by near slave labor or in dangerous factories.

So do we want jobs?

Or are we happy with low prices and a declining standard of living?

-Art Lynch


Anonymous said...

It's just like who is going to take the first plunge of sacreficing the extra pay to open up more jobs. Companies need to get with it and realize what is going on and how they directly can help.
Breanna Linsley
com 101 4080

Anonymous said...

I hate when people say are president needs to make more jobs and when presidents say they will. First of I did not know we lived in a monarchy with absolute rule.In this country there is a separation of powers so how can one man wave a magical wand make jobs. We as the people of this country need to take it to the streets, think for ourselves, and take action. We cannot expect rich politicians to care about the job market, their in there because they want power and do not need to worry about the rest.
Benny Ventresca COM101-4080

Anonymous said...

I think everyone deserves to have a job, and a good paying job at that. Do i feel that some folks just dont care about having a job and would just be happier relying on government assistance to support them? Yes. But I do think that businesses should starting trying to get those that want a job, employed and employed at a decent wage. And for those that dont want a job, businesses dont need to worry about them.

Joseph Contreras HN 4049 COM 101