March 08, 2009
JOBS, JOBS, JOBS
How shall we define the economic downturn now spooking the world?
According to the United States Bureau of Labor Statistics last Friday, 651,000 jobs were lost in February. This bumped the national unemployment rate to 8.1 percent – the highest number in 25 years.
More than 4.4 million American jobs have evaporated since official onset of the decline last December.
Most disturbing are reports of the same level of job losses worldwide. Even China – without labor unions and freely elected government officials – is hurting.
To cushion unemployment, President Obama – speaking in Columbus, Ohio, to police cadets – proposed a $787 billion stimulus package. He declared: “We have a responsibility to act, and that’s what I intend to do.”
The International Monetary Fund urges all world governments to increase their monetary stimulus “to help prevent a collapse of confidence.”
JOBS RATE
A disturbing figure is that of workers who were seeking jobs but have given up looking. It rose by a percentage point to 14.8 percent in January.
The Obama budget -- released a couple of weeks ago -- assumed the jobless rate will average 8.9 percent this year and 10.3 percent next year. However, these figures now appear too optimistic, according to government estimates reported by the Washington Post.
In Obama’s recent joint-session of Congress, he declared that he would lead an economic renewal that would lift the nation out of it present crisis “without bankrupting our future.”
He stressed an economic renewal that would bail out struggling banks while funding energy, health care and education.
CONCERN NOT ALARM
Current economic figures cited above are a concern, but not yet alarm. Ten percent declines are worrisome but not critical. Congress has propped up the banks and major financial firms.
Unfortunately – from some perspectives – Congress has concocted a spending bill that helps mortgage banks but includes millions of dollars worth of “earmarks” for such things as “bridges to nowhere,” water parks and museums.
Nice, but of little value in providing long-term jobs. The construction industry cut 104,000 jobs as the housing market remained stagnant. Retailers cut 39,500 jobs. Manufacturers reduced their jobs 168,000 jobs in February.
EDUCATION CRITICAL
Workers with education are faring best in the present downturn.
Jobless rate for those with a Bachelor’s Degree is 4.1 percent. Workers with only a high-school diploma suffered 8.3 percent. For those who did not graduate, the unemployed rate is 12.6 percent.
Oldest workers in the manufacturing companies – auto, construction and metal workers are hardest hit. Most economists say many of this group will never again find work at top rates.
Automobile workers – for General Motors, Ford and Chrysler – are hardest hit and never again will pay the top rates as heretofore. Foreign manufacturers with plants in the United States also are deeply affected here and in their home countries.
The world’s car makers probably will never again reach dominance in world manufacturing.
GLOBAL EFFECT
The global economy is undergoing a major restructuring of banks, insurers and government control.
In the United States, the change will be unnerving but relatively peaceful.
Abroad -- particularly Mexico, Middle East, India and China -- the changes may be socially violent.
Jobs will be the catalyst.
As Ohio Governor Jim Rhodes once explained cogently: “There only three things that count in politics: jobs, jobs and jobs.
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.
A new Golden Rule will prevail in today’s global economic situation: “He who has the jobs will rule.”
Buckle your seat belt.
By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist
