The big network news people wonder why the unemployment figures have gone up to 9.8% instead of dropping. The news people bring on talking heads to try to explain it without blaming Democrat policies (not that Republican policies are so great either.) So what are the real causes of unemployment in the current economic environment. Here are just a few reasons that come to mind with only a little thought that government economists should be able to figure out:
1) The Democrats have created an atmosphere of uncertainty for businesses with their insistence on increasing taxes on even small businesses. If you were running a small business and your living is directly related to how profitable your business will be, would you take any risk hiring an additional worker or two? Even larger businesses for the most part are not in the mood for hiring new people when they are not sure what their tax bill is going to be, and especially if they think it will be higher and will be cutting into profits. Their counter policies to the government policies will naturally be to stop hiring, or even layoff more people, as well as other measures which tend to reduce employment, especially new investments in plant and equipment.
2) In a move to "save money" the Obama administration has cut back important work, such as the space program, which has resulted in a cut-back in employment of aerospace workers and other supporting educated people, adding to the number of highly qualified people looking for work and competing with less qualified people. Cutting back the space program also has a domino-effect causing private high-technology businesses to also cut back and layoff people. Now we are hearing talk in Congress about cutting the military budget. This will cause even further job loss and shrinkage in the economy, not to mention possible bad effects on our military capability and readiness. These cuts will affect us for years to come, even allowing foreign countries to forge ahead of us in space and military technology. This is a dangerous direction for the US to move in.
3) Extended unemployment benefits which give a lot of workers enough incentive to stay on unemployment benefits instead of finding a job.
4) Environmental regulations on virtually every form of construction, power plants, oil drilling, roads, bridges, etc. These regulations are holding up a lot of projects that would otherwise go forward and employ more people. What business would want to fight all of these regulations and red tape?
5) Red tape slowing infrastructure work that was supposed to be a stimulus for employment.
6) Older workers that have not kept up job training. They are mostly computer illiterate and not employable at any modern office work. So that only leaves lower paying jobs such as fast food work or labor jobs that many of them are not physically capable of doing. These people will continue to be unemployed and eventually add to the welfare burden unless they get assistance to become employed at work that they can do.
7) American education has become so poor that a lot of young people can't even read. Of course these people cannot be employed at most jobs except low pay labor jobs. (There is nothing wrong with labor jobs in general. In fact, trained workers can make good salaries operating heavy equipment, or for example, get good jobs in the trades, if they get the training for these jobs. Many operate their own businesses.) We also need people that are willing to do labor work, but currently there are too many untrained people that can't find jobs.
8) Finally, the big one, "free trade". How many industries have we lost to "free trade": textiles, shoes, tools, steel, a large part of the automobile market, hundreds of household items, and almost anything you go to the store to buy - even a lot of grocery items. How many people would have jobs if we still had these industries in our country? How many jobs have been lost by losing these industries? No doubt millions of jobs. The economists will say "but we are now a service economy". Oh, really? Haven't countries like India already taken over the "service market"? Lets have FAIR trade put back in place and bring back the industries we lost.
There are also probably a lot of other factors that are a direct or indirect result of poor government policies, either at the federal or state level or both. But, the eight items I mention above would be a good place to start attacking the problems.
Call and write your Congressman and tell them to wake up and start working to do something about jobs.
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