The jobs market in America is the pits. An entire generation is staying in college on borrowed funds hoping for some turnaround; or hoping that they beat the odds and get a job that can repay their loans. Many are staying home with mom and dad much longer than in the past. Older adults face hopelessness not seen since the ’30s when they lose their jobs. What we have here is a Depression. A great depression. It may not be as bad yet as in the ’30s but it is not over yet either.
Government figures are fraudulent. They claim unemployment to be approximately 9% at this time but that does not include people who have been looking so long that they have no unemployment benefits left. Those people are just “disappeared” from the statistics. Some economists that I have read claim we might be looking at over 20% of the population that wants jobs can not find a job — or only have a low paying job far below what they had in the past.
Boom times created by the Fed has led to a bust as always happens. In the bust some businesses fail and others shed employees to survive. A recovery normally sees new businesses take up the slake by hiring unemployed people as they start up and expand. But these new businesses are not being formed. What is up with that?
New businesses need to depend on a stable legal environment and a bright outlook for the future and we just don’t have that. The Fed is trying to provide and ocean of free or cheap credit but banks are reluctant to loan money, especially to small startups. Why? Because the outlook is horrible. The government refuses to get out of the way and let people try to innovate. And besides that, it makes far more sense to hire no employees beyond temporary contract workers anyway. The government mandated costs of adding an employee are ruining the prospective employee’s chance of becoming an employee. The cost of hiring is just too high. The minimum wage is way too high to encourage new job growth and that is on top of all the other costs of employment.
The problem of health-care mandates is crazy. This is a jobs killer from the get-go and is only getting worse by the day. Then there are the millions of regulations and restrictions on every part of doing business in this country that kills growth. Regulations on all businesses in every sector have been intensifying for decades and show no signs of slowing much less being reduced.
Simply put, the economy is driven by people who offer goods and services to their fellow man. They try to offer their goods and services as reasonably as they can and they have been the engine of wealth creation for our entire history, but businesses thrive in an environment of freedom and the enterprise is no longer free in any area. In boom times the consequences are less obvious but the massive government interventions are killing enterprise in this era.
The president, no matter who he is to be, can not create jobs. The only thing he could do is to try to reduce government involvement in the private sector and allow a recovery. The odds on that? Very slim.