Getting Skills To Beat The Recession

The hard part with a recession is we get lost in worrying about short-term concerns, like paying the electric bill. The important thing is to think long-term. It's a well known fact that people with college degrees will earn about $900k more in lifetime earnings than someone with just a high school diploma. If you ask me, it's easily worth taking student loans for that amount. Now, Obama has made it even easier.

Read the rest at The Loop21.com.

Why Obama Should Have Worked Harder On Economy

Forcing healthcare through Congress at a time when the issue was not a top priority for most Americans will likely cost the Democrats come November....as I have already mentioned. Obama & Co. should have at least been much more aggressive on plans for job growth while pushing for healthcare reform.... this would have helped in making them look less out of touch. His team of advisers are definitely not the most competent.

Now they want to tackle immigration... thinking (mistakenly) that the healthcare victory has somehow given them momentum for dealing with an issue even more contentious. Obama will end up wasting what little political capital he has left on Immigration Reform. Clueless doesn't seem adequate for describing Emanuel, Axelrod, Plouffe and all the rest.

There is still a little bit of time between now and November. Alot can change in that time. It looks like the economy may finally be creating jobs again.... after losing millions over the last two years. But it will take a long time to change the public's perception... especially when there are TV networks and radio stations dedicated to telling Americans that Barack Obama and the Democrats are devils, socialists, and that they are to blame for the economic collapse. (Americans are incredibly gullible and unfortunately they listen to the nonsense from Faux News and the rest).

Republican in Tennessee Says 'Unemployed Should Just Find a Job'

Benefits about to run out? Too bad. You lazy folks should shut up and find a job.

From the Young Turks:

No One Would Listen - A Story of U.S. Government Corruption and Incompetence

Hear a discussion with two financial analysts who tried to sound the alarm about Bernie Madoff's activities but were ignored by your federal government.

Madoff often bragged about his cozy relationship with regulators... (which allowed him to do whatever he wanted). Many of the holes in the financial regulatory system still remain. And it's a symptom of a wider problem of corruption in government that Americans have not only grown to tolerate, but to expect. There was the muzzling of Brooksley Born, former chair of the Commodity Futures Trading Commission who tried to warn the nation about a looming financial crisis; The FDA being corrupted and controlled by the drug companies; and even oil industry execs openly providing gifts & having sex with federal regulators from the Interior Department in exchange for less stringent oversight.

States Making Deep Cuts to Child Welfare Budgets

States are making deep cuts to child welfare programs, due in part to severe budget shortfalls brought on by the recession. This highlights what is really valued (or not valued) in this Country. The true character of a nation is reflected in how it values its people, especially its children. And we know that whenever finances are tight, social welfare programs and budgets for protecting children are all too often among the first items to be cut. What does this say about the Country?

With the severe difficulty in achieving health care reform, consumer protection, labor rights, equity in elections vis-a-vis corporate influence, and other human needs, (battles that have already been fought in other industrialized Democracies), it is abundantly clear that American priorities aren't geared towards protecting its people or improving the quality of their lives. The NPR report linked above supports what I wrote last year regarding Shaniya Davis.

Many Could Face Years of Unemployment

A New York Times article calls them "The New Poor".

See Related Post

Great Recession is Actually a Depression for Many When It Comes To Unemployment

Hear an informative discussion from NPR on the impact of the latest recession. Economists Andrew Sum & Barry Bluestone have broken down the unemployment numbers group by group and have been able to show huge disparities in terms of who is being impacted the most. The mainstream corporate media has been almost AWOL on this. Listen Here. See the findings of a new study from the Center for Labor Market Studies at Northeastern University.

I have been writing all along about the weakness of the stimulus efforts since last year when the legislation was passed. I thought that employment would be lacking because there was not enough focus on the creation of lasting, sustainable jobs, particularly in new industries. There was an opportunity to do something big & impressive by creating a public works program and/or grant programs for start-ups in new technologies. There was also a need for aggressive loan programs for small & medium sized businesses.

Even if you have employment, survival is becoming more precarious.

Bonus:

Also hear a discussion about the gridlock and paralysis in the U.S. Congress.

The Story of Sylvia Martinez

NPR has a new segment on Sylvia Martinez. The program is part of a radio series on the experiences of the unemployed as they seek work during the recession mini-depression.

This segment seems to be just as depressing as the last one.

The Human Cost of The Broken Economy

Hear an NPR story about the way this economy is impacting everyday people. It shows how brutal this economy can be.

American Capitalism can really rob people of their dignity and humanity. It can rip the spirit right out of you. A cruel system indeed.

I am becoming more and more hopeless everyday (and i'm employed full-time...although under-employed). I guess I should feel lucky...but my employment situation is becoming more precarious with each passing day. Bankruptcy was officially announced this week. I started working when I was 16. And I have been employed continuously... and full-time (except for 3 months) since I was about 19 years old. I'll be 36 pretty soon. The idea of not working is unthinkable to me.

But the hopelessness is real. I have the constant feeling that i'm falling face down from the top of the Sears Tower in super slow motion.... going down a little more everyday....knowing what is waiting for me at the bottom but not being able to stop it.

Talking Recession, Social Security, LBJ & Reagan

As we all know, millions of individuals are having a rough go of it in the new (recession) economy. With all the focus on the firing of GM's Rick Wagoner, we forget all the regular folks facing just as much pressure but without the golden parachute.

Then, of course, there are the nation's current and future retirees, who must look forward to a day with a diminished Social Security Trust fund. You see, all those job losses, leave far fewer workers contributing to the Trust.

Of course, it's not all bad. Compared to his federal prosecutors, Alaska's Ted Stevens doesn't look half bad. Although you still have to wonder about the financing for his house. It's a good move by Attorney General Eric Holder. Hopefully, it's the start of a firm commitment that Obama's Justice Department will not use partisanship as a tool in seeking justice.

You know the world is a little upside-down when Republican John Feehey, a former congressional staffer-cum-lobbyist writes of how he likes Obama, even though he doesn't like his policies. A mature dissenter?!?! How refreshing.

More like it are partisan supporters of LBJ and Reagan disagreeing on the potential consequences of Obama's domestic political agenda.

Dr. Cornel West Takes Obama to Task On Economic Policies

In comments from this weekend, Dr. West calls for more of a fundamental shift in economic policy, criticizing Obama's effort to hold on to the traditional economic architecture. Where are the bailouts for poor and working class Americans? (I sure could use a bailout right now... a student loan bailout.... because I purchased an education that I couldn't afford).

While I tend to agree with Dr. West, I also understand that for practical purposes, Obama may see the corporate Wall Street elites who helped crash the financial system as having the solutions for getting the system running again. I personally disagree with the choice of Geithner and Corporate elites serving in the Administration. But Obama obviously sees a practical benefit from their participation.

I think there probably has to be a balance....at least for the moment. I agree that long term, this Country has to invest more time and resources improving the lives of working people. On the other hand, Obama must first fix the economy. In the short term, fixing the economy may require Obama to get cozy with the elites who West rails against.

Women Giving Up Their Dignity To Survive the Economy - What Would You Do In a Desperate Financial Situation?

What Are You Willing to Do If The Going Gets Rougher? What's Your Plan B if you lose your Job? Have you thought about it? If not, you probably should.

A recent MSNBC report highlighted the fact that many ordinary women are now turning to the Sex Trade in order to support themselves and their families in what's being called "The Great Recession" (perhaps soon to be a Depression). To me, this is one of those things that really gives you a true indication of how well an economy is working for the average citizen. It's more powerful than any abstract Labor Department number that rarely gives you a human face.

This latest story follows a story from ABC News which aired late last year.



This really tells the tale about what's going on in the economy more than any other measure. It really shows the kind of nightmare that Bush/Cheney left for us....and it isn't over yet. Sad and horrifying at the same time.

Whether I lose my job this year is basically a toss up. Bankruptcies from businesses are spreading through the economy, since many are finding that they can't meet their obligations to creditors and suppliers or found themselves owing too much for expansions they started 1 or 2 years ago.

But - for the women reading this - could you ever see yourself giving up your dignity and turning to sex work to earn money? How bad does it have to be for someone to get to a place where they have to make this kind of decision?

Things are bad...but it isn't quite the 1930's ...at least not yet (although if the Country keeps bleeding jobs at the rate of more than half a million a month...it won't be long before we get there). I believe that we are likely to reach the technical definition of a Depression sometime this year... I may discuss that more in another posting. But how bad does it have to be for you to consider dehumanizing and objectifying yourself by selling your body? Or is that just not an option for you?


And have any of you made your plan B? Have you thought about what you would do if you lost your job? What are your plans? The NPR program On Point had a great discussion this week where they talked with real everyday folks about their "Plan B's". Take a listen.

I know it's easy to sit in judgment when some of us still have our jobs... even those like myself who hate the jobs we have... but are actually feeling lucky right now (which is a pretty creepy feeling). But I personally couldn't Prostitute myself if I were a woman and if I faced a desperate situation. I would simply take lesser work and work harder... In fact, as a man, I am facing a desperate situation at the moment. I'm currently under-employed...But my attitude is just to keep trying.... I can't trade my dignity for cash... no matter how bad things get. If worse comes to worse, I can try to find a family member to move in with (which would be a crushing blow for me... since I have worked so hard establishing a good work history and have worked so hard putting myself through college...not to mention the fact that i'm extremely independent..hate to admit that I have lost a battle, am a personal failure and hate the idea of needing help. But I would pull a Dr. Kevorkian before parting with my dignity.

But then again, we don't know for certain what we would do if things got truly desperate.

__________________________________

Related Articles & Blog Posts

Gina from What About Our Daughters Argues that All Money Isn't Necessarily Good Money

Additional link for this story from HuffPo

Tent City Grows in California - Reminiscent of the Great Depression

See detailed story from the UK Times

By the wide stretch of the American River in Sacramento, history is repeating itself. Here, during the Great Depression of the 1930s, men and women who had lost everything and despaired of finding work built rough shelters and huddled around fires.

Now the spiral of job losses and house repossessions has left another wave of Americans homeless, and a new tent city is growing rapidly on lumpy, derelict land between the river and the railway tracks here in the capital of California.

There are more than 300 people living in scattered encampments stretching a couple of miles along the river bank. As many as 50 more arrive each week. Unemployment in Sacramento reached 10.4 per cent in January and California is suffering some of the worst repossession rates in the country, with as many as 500 people losing their homes every day last year.

Charity workers in the city can no longer cope with the number of people coming to them for help. The shelters are full, with one home that caters for women and children turning away 200 people a night.

Continue to full report

Blacks Fare Worse During Recessions

Over at The Loop, I have a column up on how blacks do during recessions and how some cities are better for black employment than others.

Homeowners Are Drowning

All the headlines says homeowners are drowning, so I feel I must play off the mainstream media by writing that homeowners are drowning. Nonetheless, it is true and it is sad, one in five are not doing so well with their mortgages. Although, as I've said before, there are plenty of renters not doing so well either and the government generally does squat for them, so despite Obama's latest pledge to help struggling homeowners, the rescue efforts still reek of class bias.

Really, these people don't own their homes. They've agreed to a repayment schedule with their loans from a bank. I wonder if there'd be as much as sympathy if we called it a "Bailout of Delinquent Borrowers" bill? Now, before you comment, I am perfectly aware that plenty of people were snookered into bad deals. We should help those people, but I am a bit miffed that we hold up homeowners as the exalted example of American virtue.

What about people who play by the rules, but are sinking in student loan debt? They've gone into debt to better themselves and better society and what do they get?

Part of my reluctance to support this is that the real victors are builders and realtors. They are two of best organized interest groups and they profit handsomely by the mortgage interest deduction.

Chesley "Sully" Sullenberger Speaks to Congress - Stresses Need for Better Pay and Conditions in Industry to Retain Good Pilots

The pilot & crew of U.S. Airways flight 1549 spoke to Congress today during a House Subcommittee Hearing. Chesley "Sully" Sullenberger stressed the importance of providing good pay and benefits so that quality pilots can be recruited and retained in the Commercial aviation industry. To make his point, he highlighted recent pay cuts and the threat that this situation poses to the flying public.

Watch Video of Hearing

Stimulus Plan Likely To Do Little For Small Businesses

Lloyd Chapman, head of American Small Business League, was critical of the stimulus package in an interview with Tavis Smiley over the weekend. Chapman echoes some of the problems with the stimulus Bill that I mentioned back in January.

Listen Here (you may need to disable firewall temporarily if audio does not load)

Interesting information about Japan's Recession

See here and here.

Problems With Obama's Economic Recovery Plan

I see a few fundamental problems with Obama's $800 Billion economic stimulus plan as it is currently being presented. Today's economic situation has created an opportunity to establish new sustainable industries. However, the plan doesn't focus on providing incentives and seed capital for the creation of "Green" Companies.

There are three main reasons why this is important:

1. The Federal government doesn't have the capacity to create jobs like the private sector could. It's the private sector that will have to create the bulk of the 3 million new jobs over the next few years that Obama says he wants.

2. The infrastructure projects will probably have a very narrow impact in terms of job creation. It will be great for the road construction contractors, the concrete suppliers, folks who are in the construction trade, and the few businesses that will get a residual benefit. However, I don't see how this will help workers across the board who have either lost their jobs or who are in danger of losing their jobs. Most of the job loses have been across the spectrum... from finance/banking, to retail and manufacturing, to tech companies and airlines. In fact, one of the only healthy and insulated job sectors is in the Healthcare industry. There will always be a need for nurses, hospital staff... billing agents, pharmacists, etc. But other than that... workers are feeling the pinch across the whole spectrum of employment. So narrowly focusing on certain kinds of infrastructure improvements (which the Country does need) doesn't seem to make much sense to me. This probably won't be a benefit to most of the workers who have lost jobs over the past year or so... or to those who are about to lose their jobs.

Furthermore, it will take quite a long time for this kind of spending to trickle down through the rest of the economy, and even when it does, it will be so narrow that the impact may not be as fruitful as policymakers hope.

3. The benefits from this kind of spending will be temporary. Once roads and bridges are built or rehabbed and all the money is spent, the jobs created through temporary State and Federal contracting will have to be eliminated. There is no sustainability involved in the plan. Where will the jobs come from once the construction projects start or when they are completed?

Solution

As I have mentioned before in a suggestion to Change.org... The Obama Administration should create a quasi-government entity (like the FDIC, TVA, Corporation for Public Broadcasting...there are templates for this already), that would be responsible for allocating funding to help seed the creation and development of new industries to meet current and future challenges. This entity would provide grants and low interest or no interest guaranteed loans for start-up companies. This government entity would also help spur innovation by encouraging competition among existing and future companies, and encouraging research (including doing research of its own). Once this entity is in place, massive amounts of money could go towards establishing new sustainable jobs in new industries. Green jobs, jobs in technology, education, transportation, urban development and housing could all be created...and these would be sustainable jobs that would be around years after the initial funding dries up.

The current plan seems to focus too much on throwing massive amounts of money into a black hole, rather than investing the money and directing it to the areas of the economy that would create the biggest and most sustainable return on the investment over time. There would be more Federal and State tax revenues as a result of a more comprehensive and sustainable job creation plan, and there would be a much wider impact from the residual jobs that would be created (jobs that would be created in sectors that support the larger industries receiving the Tax money).

Without this, Obama's plan runs the risk of falling flat, while costing taxpayers more than a Trillion dollars... debt that the Country already cannot afford, but that would be even harder to pay back in the context of a failed jobs creation effort. These new jobs and new industries will not sprout up on their own. Banks simply don't want to loan money for corporate projects; and existing transportation, technology and energy companies aren't being pressured to innovate due to inadequate competition and the lack of new markets to sell their goods and services. Companies have no incentive to spend money on R&D, especially at a time when everyone else is pulling back on spending and watching every cent. They want to be certain that there will be a market (that would create a return for them almost immediately) before they invest tons of money on new projects. Therefore, the Federal government must intervene to act as sort of a seed factory and incubator for the creation and development of new industries. It must also encourage innovation and competition among existing companies by doing research of its own, by creating a market that companies will want to compete for (Federal Government contracts, retrofitting Federal buildings for energy efficiency, providing Fuel efficient autos, etc), and by supporting new entrants.... start-up companies that will be the companies of the future.

Much more should also be done to stabilize the Housing Market... where one of the main focuses should involve helping homeowners avoid foreclosure.

McCain Advisor: Recession, not only 'mental', but Americans=whiners

McCain Advisor Phill Gramm to the Washington Times:

"You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. "We may have a recession; we haven't had one yet."

"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.

Question Ladies and Gentlemen of Mirror On America......

IFFFFF

An Obama Advisor had said that this recessional was MENTAL.

And then called Americans ' Whiners'...

What do you think would be happening on your tv screens right now?

Yep.

I thought so.