I'm seeing statements in the online press now that 70% of the stimulus package is yet to be spent. I know it was a two year program but we are already at the end of the first year and we have only arrived at the 30% milestone. What is the holdup? When are we going to see some effects on the reduction of job losses? That was the key issue in the package, was it not? If we get people employed, they will spend their salaires, the economy will improve so the commercial real estate world will improve. Next year has got to show some definitive improvement. What are the odds on that? Non-political opinions are preferred.
Things used to be different. The generation that went through the Great Depression and then fought together through WWII took care of each other. The CEO of General Motors and the machinist on the assembly line fought in the same unit in Normandy or Iwo Jima. The CEO would never even think of destroying the livlihood of his comrades unless absolutely necessary for the survival of the company. Employees really were treated as a company asset. Unless they were crooks or obnoxiously incompetent they kept their jobs until retirement at 65.
Somewhere around the mid 1980s things began to change. Companies started looking at employees as "cost centers." Instead of being viewed as assets, the run-of-the-mill employees were viewed as liabilities who should be terminated as quickly as possible. The only employees that have value to a company anymore are the CEO and his/her five or six hand-picked henchmen.
Those five or six people believe that they are entitled to tens of millions in compensation because they believe that they are irreplacable, while the other thousands of people in the organization are scum that should be squashed like bugs.
I am waiting for some quasi-Communist like Ralph Nader get elected President who wants to nationalize the Fortune 500. At the rate the corporates sleazeballs are going they will have angered enough people to make that a plausible scenario by 2016 or 2020.
It the old days, corporations used to use an expression that "the employees were the corporations greatest assets" but it was false even then. At least they no longer try to put out that nonsense. Employees are just a tool to be used and discarded when appropriate. It was true then and it's true now.
<<Now,...if I could just keep the deer from eating my money (crops)...! >>
Try planting some pot on the border of your property and it will decoy the deer away from your money crops. Deer are natural-born potheads and they won't bother your other crops if "weed" is available.
Sole proprietors are reluctant to hire employees in the USA for the same reasons you mentioned plus all the other legal liabilities that occur when you put another person on your payroll and incur liability for anything injurious that they might do.
There has been a boom in temporary services and in "employee leasing" where a small business can "rent" employees on an as-needed basis without having to worry about the governmental and legal responsibilities. I've "rented" employees before for my business and it has been a beneficial arrangement for all parties.
M-dala...I feel that there is nothing that our leaders in Washington D.C. can do to restore jobs that are gone forever...unless the current laws are changed that favor outsourcing U.S jobs to other countrys...! At this time a major corporation in my area is moving a local plant to Mexico with the loss of 1200 jobs....Plus, they are taking 51 million dollars in tax write offs to do it..!
Very true. I'm in the Fed economic game and as the original post stated...not even half of those funds are out there. The rural broadband program will start releasing its funds early next year...maybe not a whole lot of jobs, but ultimately a good thing for all.
It is one of the sad facts that when the best we can claim is that we are a "consumer nation" and we are pressed to identify the niche we have in production or manufacturing. The US economy has been based on financials and that is where the root of the problem has been as that sector has stagnated.
I'm of the opinion that this admin has a grasp on the situation and as they have said...double digit unemployment was going to be an inevitable part of the cycle...and the UR is a lagging indicator so it will likely be Spring before we see much positive movement in the job creation.
But i do believe the worst is behind us..though we really need to do some self analysis on what kind of economy we are going to have going forward.
My first job was as a Systems Engineer for a mainframe computer maker. I had a client site who manufactured components for mobile homes. When I saw Japanese salesmen in the purchasing managers offic several times, I asked one of the managers why the Japanese were selling. He said it was glass for the windows. I was surprised because glass windows are heavy and thus expensive to ship. The manager said that their labor cost was so low they could afford to pay the cost of the shipping. This was in 1968. So you see, the US has been shipping jobs overseas for decades by buying from the low cost bidders. The big box stores contribute to this and the public benefits from the lower cost of living, don't they? Unfortunately, the unemployed are the ones who pay.
Effects on job losses will stop once the private sector starts creating them. As we know, the gov't does not produce anything, nor provide any service. The majority of job losses are confined to 2 sectors of the economy (manufacturing, and Construction). Manufacturing will probably never come back in this country until A) our government decides on an energy policy B) Unions learn to take their lumps and cant be as highly paid as once were and C) the taxes involved in producing goods here is reduced.
The effect of the stimulus bill has been negligible. I live in MI and i see those recovery act signs on roads everywhere. However, on a deeper analysis, MI spends more money on the Dept. of Corrections than its Public Universities. This country has misplaced priorities. Social nets should be reduced, free markets should be encouraged, and taxes should be low (to keep government from interfering in everything). That being said, i dont see the stimulus bill doing anything beneficial in 2010 or going forward.