Friday, January 6, 2012
Another good looking Jobs Report and a month of solid Job Growth, with 200K Jobs created in December. A lot of that probably has to do with the Holiday Season. So we'll see if we have a dip in January as a result or is this a sign of things to come. A falling Unemployment Rate as well from 8.6 to 8.5%. Our struggling Manufacturing Industry also picked up as well so thats another good sign. The questions are two from an Economic Point of View, does this mean we are on course. To finally putting the "Great Recession" behind us and in the road to having a strong economy again. If the Payroll Tax Cut doesn't get extended in February, I would say no. Because that would mean a lot less money in the hands of Middle Class and Low Income workers. If its extended for a year then that will be a big help, if its extended indefinitely. And Social Security is Reformed long term, then it will be an even bigger boost to the economy. Because no longer would workers have to see 6.2% from the Payroll Tax taken away from them. To go along with Income Taxes and everything else. The other question is political, not as important but important. If the Unemployment Rate is still 8.5% as we hit November, President Obama will lose reelection, unless the GOP nominates Rick Santorum. Then maybe the President can pull out a close victory. If we get under 8% and start moving towards 7.5% and lower, similar to 1984 with Ronald Reagan. I believe the President will get reelected and fairly comfortably.
What we should be doing is looking to see how we can put those Unemployed Workers. Who probably by now feel they've been looking for work forever without any results. Back to work and to me that gets to reforming the Unemployment Insurance System and turning it into to. A Job Placement System where yes Unemployed Workers can collect Temporary Unemployment Insurance. But they have to be looking for work as they are collecting it. And even get help going back to school and going through Job Training, Job Fairs that sorta thing . As well as working with a Job Placement Worker to help them find another job. Before their Unemployment Insurance runs. Similar to what we did in 1996 with the Welfare Insurance System better known as Welfare to Work. This should be part of any Jobs Act thats passed in 2012, along with extending the Payroll Tax Cut. We should be paying Unemployment Workers so they can keep their homes etc. But also pay them find jobs and get retrained not sit at home and wait for someone to call them. The other thing we should be doing, has to do with the Manufacturing and Construction Industries. Like Infrastructure Investment and other things.
200K created in December is definitely good news and with President Obama reducing the size of the Military. That means more people will leave the Military. Which will help us lower our Budget Deficit and it will also mean more Well Trained Workers will enter the Job Market. But we still have a long way to go until we once again have a strong economy.