July 6, 2008

It's All About Jobs

Bureau of Labor Statistics

That 800-pound economic gorilla named “Recession” -- which has been snoring in the basement for eight years – snorted last month and startled the folks upstairs.

Is the beast who “sleeps anywhere it likes” about to awaken?

The U.S. Bureau of Labor Statistics reports that about 62,000 jobs disappeared in June. This is disappointing because high school and college graduates enter the job market at that time.

Nevertheless, the American unemployment rate stayed steady in June at 5.5 percent. This despite erosion of the job market as businesses here coped with loss of trade to China, India and other countries unencumbered by labor union rules.

The U.S. economy gained 15,000 jobs in the last 12 months – the lowest increase since November 2003.

The rule of thumb is that we are in a recession when the number of jobs has dropped for six consecutive months.

That dismal statistic has narrowed, but the number of Americans still employed in factory jobs has grown 2.8 percent in the last 12 months – down from 3.2 percent – and below the rate of inflation.

INFLATION JITTERS

Everyone gets nervous about INFLATION when jobs get relatively scarce and the prices of food and fuel zip upwards. Folks in the European Union are especially jittery about their Euro dollar as street demonstrations grow deadly.

The European Central Bank, and those allied with it, raised interest rates Friday to dampen street riots over inflation and unemployment.

India raised its key lending rate twice last month, and Indonesia three times.

There is real risk of recession in Spain and Ireland where housing prices have collapsed.

The collapse of housing prices also has spooked Americans during a presidential election campaign wherein charges and counter-charges befuddle voters.

There is foolish talk about “import taxes” on foreign goods and services -- in order to “protect” national producers and growers.

Folks with lots of years on their personal odometers remember the Great Depression of the 1930’s that devastated the world economy with “trade barriers.”

No thanks! Been there. Done that.

SECRET OF SUCCESS

GOV. RHODES AND LIN CAMPAIGNING IN THE RAIN AT WOOSTER, OHIO

Back in the 1970s -- when I was active in Ohio politics as chairman of the Wayne County Republican party – I knew Governor James Rhodes well enough to ask him the secret of his success in winning an unprecedented four times.

He replied, “Jobs, jobs, jobs.”

He meant it for others, not himself.

Rhodes was the son of a coal miner killed in a mine accident. Jim skimped on his education to work and help support his family.

As Governor, he steered major funding to Community Colleges and state parks.

Most of all, he related to workers – particularly in Cleveland – who regularly crossed over the Democrat ticket to vote for him.

SWING PRECINCTS

Rhodes’ chief staffer was Fred Neunswander from Wayne County. Fred studied voting statistics and noted five swing-precincts – including one in Wayne County – that always voted for the winning candidates, Republican or Democrat.

Rhodes paid these precincts special attention by surveying their opinions and adjusting his statewide campaigns accordingly. Consequently he won handily despite public surveys and newspaper endorsements to the contrary.

Also, he slanted his campaign promises to jobs for factory and farm workers, education for their children, and lakeside state parks for family recreation and camping.

CHOOSING A VICE-PRESIDENT

Gov. Rhodes declined the vice-presidency of President Richard Nixon, but participated in an all-night conference at the 1968 Republican national convention in Miami to choose Spiro Agnew for the post.

My wife and I took the hotel elevator at 6 a.m. to the dining room for breakfast. By happenstance, Gov. Rhodes and other Republican dignitaries were on the elevator. I greeted Rhodes and asked what he was doing so early in the morning?

The governor replied, "We have not been to bed. Hard at work helping Mr. Nixon choose a running mate."

“Who is it,” I asked.

“Spiro Agnew!”

“Who?”

So much for smoke-filled rooms.

The convention for the rest of the day asked the same question.

Nixon and Agnew won the general election but the latter resigned in 1973 when he was accused of contractor kickbacks as chief executive of Baltimore.

Politics ain’t beanbag.

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist