Earlier this week, I watched yet another argumentative political interview on television. The show's guest did what annoys me about politicians and "political analysts." She refused to answer the direct questions asked, instead choosing to deliver her own scripted messages--regardless of whether they had anything to do with the question. When a witness does this at trial, judges and jurors tend to know the witness is hiding something and is therefore not very credible on the issues being discussed. I wonder if, despite common propaganda, the majority of Americans feel that our lifetime politicians (and the industry's massive support personnel) fail to be transparent and are hiding important information. I know this is my suspicion.
As I heard discussion in that interview of this country's estimated $2.4 trillion deficit, I was told ther is a proposal to reduce the deficit by cutting $1.4 trillion in benefits such as Medicare and social security. Despite the fears we might have about these cuts, there is room for them. These systems are still fairly inefficient, and abuses are still rampant. We still have many able-bodied people collecting benefits who could be working in some capacity, especially in our largely sedentary, service-based economy.
In June, 2.7 million persons were marginally attached to the labor force, about the same as a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. (See table A-16.)
(See http://www.bls.gov/news.release/archives/empsit_07082011.htm). Retraining (and motivation) might be required, but I believe this could be quite useful to the individuals and the country in the long-term--a period we often forget to address.
Also according to the program I was watching, the remaining deficit could be reduced to some degree by raising taxes on the wealthiest Americans and corporations. The argument against this tax increase was repeatedly that these "job creators" should not pay higher taxes when unemployment is high. As one T-Mobile commercial states (on another issue but still relevant here): "It makes sense, if you don't think about it." Unfortunately, I thought about it.
If you've watched, heard, read, or attended any of my programs, you have probably heard that the majority of American businesses are sole proprietorships. It's true that most of them have no employees, but this does not necessarily mean they are not "job creators." They create jobs for themselves and were estimated to be 21,351,320 of the 27,281,452 businesses in the United States. See http://www.census.gov/econ/smallbus.html. That is 78%.
So, sole proprietors without employees arguably provided income (the purpose of employment) for 21,351,320 people in 2008. The other 5,930,132 businesses had employees and provided a substantial number of jobs, but if my understanding of the Census statistics is correct, the largest 2% (and presumably the wealthiest) provided only 26,883,750 jobs--slightly fewer than sole proprietors. Yet the tax departments have little difficulty taxing the self-employed.
In all fairness and full disclosure, I do not mean to suggest that there are not small business owners in the top 2% of the wealth Americans and corporations that would be subject to the proposed tax increases. However, I do intend to diffuse the argument against tax increases on these purported job creators.
What you're not being told is what you probably already know from speaking to friends, family members and neighbors. In the first quarter of 2011, there were 1,397 "mass layoff events" that can only occur in large businesses; otherwise, they would not be "mass." This accounted for the loss of 190,895 jobs. See http://www.bls.gov/news.release/mslo.nr0.htm. It may also be attributed as the cause of a 15% increase in entrepreneurship. See http://www.hiscoxusa.com/small-business-insurance/newsroom/press/2011/layoffs-and-innovation-drive-small-business-startups/. In other words, it appears that "the little guy" is actually the job creator in today's economy. (Remember "Joe the Plumber?" What happened to fighting for [the fictional] him?)
We need a better plan, and if that means a wealthy American has to postpone the purchase of a luxury item, cut back on exotic vacations and second homes, skip an occasional spa treatment, buy items on sale, or even send their children to a free public school, so be it. Likewise, if a large corporation has to lay off a few workers that might become their competitors and spawn innovation, hooray! (Did we learn nothing after the massive bailouts? Protecting "the same" only breeds more of the same.)
I haven't bought a boat--ever. I haven't had a vacation in since 2006. I do my own skin and nail care, if not also my hair when I can. I buy many items on sale or in discount stores. I just checked my pulse and looked in the mirror. No. It hasn't killed me.
If I had children, they would probably go to a good pulbic school like I did because I would be involved enough to fill any gaps I thought existed. I know I have learned as much, if not more, from my relationships and life experiences than I learned in school anyway. Diplomas and degrees are not magic tickets to lives of comfort and joy. Learning continues throughout our lives.
Today, I am learning that (as I suspected) our leaders are not leading us to success and stability. They are too far removed from the average citizens like me to understand that promises of job creation mean nothing when the jobs are part-time, largely pay the minimum wages and fail to have a positive long-term impact on our economy.
I heard similar arguments when I was working in the sport industry. Major sport franchises argue for tax incentives to build a stadium or arena the city cannot afford, but it promises to bring a number of jobs. The owners gloss over the fact that these jobs will mostly be for game-day ticket takers, concession workers and ushers paid the lowest possible hourly wages for the fewest number of hours per week. Many of the higher-paying professional positions will be occupied by friends and family members of the owners or by "interns" who probably would not meet Department of Labor criteria for bona fide internships.
I enjoy the sport franchises, and I appreciate the experiences I had in the sport industry. Yet the sales kit we get is full of details with which the marketers have taken creative license. The current US budget arguments are similar, and we need to "read between the lines"--despite the endless chatter that confuses us and the issues.
The chatter and constant media bantering is strategic, in case you hadn't noticed. If you ask to be spoon-fed, you will likely get low-nutrient slop. Have you ever worked in a soup kitchen? The cooks do their best with the resources they have and some food is often better than none, but you won't see a super-healthy person sustain himself or herself on this diet. If you want better--and certainly if you want the best--you have to research what works for you, be willing to make a few errors (or sacrifices) and do it on your own. That is how we built this country to its current powerful state.
Yes, there were mistakes--some of them horrific--but if we each contribute now in our own ways and share the sacrifices necessary to change our course, we can get back on a path to success. In comparison to the sacrifices of our ancestors, ours are minimal.
When I feel despair and begin to whine, I remind myself of my Grandmother Lula, who I never knew. I think of her awakening in the coldest of winters with snow on her blanket as she prepared for a day of hard manual labor without the use of power tools or machines. I remember the stories I have read of slaves, soldiers and pioneers.
I am so fortunate that I do not have to risk injury or death for my meals. I have shelter and a wardrobe three times that of my grandparents--and I did not have to loom or sew a single thread. I have fairly clean running water for showering and drinking. I maintain connections with loved ones far away through telephones and the internet, as well as postal mail. I can visit my mom in a matter of hours, and I don't have to save for years or sell my home to do so. I have an education and voting rights. I am not property, and I can own property in my own name. These were largely unfathomable rights for my ancestors and many of yours. Yet we resist comparatively minor sacrifices to preserve these freedoms and luxuries. It's time to rethink this.
