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| Obama is now ready to blame small business |
But surprise, surprise. Just as Hillary Clinton discovered, Obama too will find that the LinkedIn community is much more educated than say Facebook's. So, his article has initiated a tidal wave of negative comments to this the most incompetent of all presidents.
Not happy with diluting our international standing across the globe, this president has also fractured our social structure Any surprise that two nationalists, Bernie Sanders and Donald Trump are commanding so much public attention during the present primary elections?
And now that things are clearly broken, the democratic party seems to have realized that they need to some how convince young Americans that they are best represented by them. Yes, these are the same young who live at home with their parents despite sporting a college degree.
But Obama is the king of putting lipstick on fried pork. His article attempts to place big rosy glasses over the tablet generation.
Unfortunately, LinkedIn is not the place. This is a site for professionals. Most members have some sort of professional career behind them already. Just think of how difficult it is to present to the world your professional profile, an equivalent to your resume, if you have never had a single job. So in a way, Mr. Obama is talking to the walls. Those that cheered him through his last two elections are absent.
Now that those that have been residing right under Obama's boots the last seven years, small business owners, are in fact who read the article. Again, outside of the one or two butt kissers, the rest of the LinkedIn audience was not happy. Following is the article's transcript. Then, below it, I am also including my comments to the tread.
Here’s the Scoop: Why My First Job Mattered
President Barack Obama
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| "Scooping ice cream is tougher than it looks" |
My first summer job wasn’t exactly glamorous, but it taught me some valuable lessons. Responsibility. Hard work. Balancing a job with friends, family, and school.
That’s the story of so many Americans. Access to a job in the summer and beyond can make all the difference to a young person – especially those who don’t have access to many resources and opportunities. Employment can also help bridge the “opportunity gap” we see in the summer months, when young people tend to fall behind in educational achievement. Too often, those idle summer months are when they make mistakes that might get them in trouble with the law and set them down the wrong path.
So we know that these opportunities matter. But right now, landing that first job is all too difficult for students, and even harder for the one in seven young Americans between the ages of 16 and 24 who are not in school and don't have a job. When you’re just starting off in the working world, the prospect of finding a job with a blank resume, limited education, and no meaningful connections to employers can be daunting.
This is where our communities can play a big role. We can make sure local businesses create summer job opportunities for young people who need them, and extend those opportunities throughout the year.
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| What is worse than not having enough to retire? Taking the part time job that would normally go to your child and still having to pay for his entitled butt. |
We’re going to do our part. But preparing our kids for the future is going to take all of us working together. So here’s what I’m asking you to do: If you’re an employer or business, give more young people their first job this summer. Work with your communities to recruit, train, and mentor young people who are out of school and work.
Businesses are already answering the call: In Baltimore, Veolia Transportation brought young people from the community onto their teams as part of a city-wide summer jobs program. At 16 years old, Stephanie Odom joined the team at Veolia as an office clerk, giving her a crucial first foray into a professional work environment. Growing up in a part of Baltimore where many of her fellow classmates didn’t have support at home, Stephanie took the opportunity at Veolia, giving her an array of new perspectives and new connections that she still references when applying for new jobs. At the end of the summer, she extended that job to be part-time during the school year, and today, at 19 years old, she is attending college to one day become a school psychologist who will help other students realize their full potential.
This is just one story of the millions of young Americans who have been given a chance to contribute to their communities with the help of a local employer.
That’s what my first job did for me all those years ago. And while I may have lost my taste for ice cream after one too many free scoops, I’ll never forget that job – or the people who gave me that opportunity – and how they helped me get to where I am today.
Let’s make sure every young person knows that, in America, we’re all committed to helping them achieve their dreams.'
Let us now go to my not so soft comments:
a) "That’s what my first job did for me all those years ago"
Thanks for the insight, Mr. president. But let me understand, ice cream scooping and the many free scoops were so difficult that you decided to become a president/agitator? I wonder how many people knew this before they voted last two times. Have a wonderful retirement.
b) Let's see. First the birth/death rate. More US businesses are now dying than are being created. Last time this happened was... Next, the fact that all new jobs in the economy are marginal in nature and are thus exclusively created by new businesses... yes the same new businesses that are not being created under Obama's seven year attack on small business. Is this article a last ditch attempt to show his followers that he remains the candidate with the best intentions? ... wait, he is not a candidate any more.
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| Capital Investments in the US have been at zero since Obama was elected; a phenomenon not seen in the US for 70 years source: The Federal Reserve of Saint Louis, MO |
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| Businesses have built up inventories hoping for a recovery. Yet, sales failed to rise at the same rate. What comes next? Old, over-supplied goods deflate future profits. Terrible when facing higher rates and a pending recession. source: The Federal Reserve Bank of St. Louis, MO |
d) Let's see. Young people need their first job where they can be trained and mentored... and I assume this is to be balanced with the proposed minimum wage of $15 and Obamacare rights when working past part time? And then there is workers-comp, social security, an extra computer and desk... If Mr. Obama wishes to get these eager workers their first job, how about letting us give them real training. How about jobs with real responsibilities. You know, nothing like government jobs. What if we could legally hire them the old way. Under an apprenticeship program, they will earn valuable skills and experience rather than an undeserved income. We will make sure to turn them into productive citizens. Apprenticeship was, after all, our advantage over Germany's war machine when we suddenly had to catch up during the second world war. So we could say it has a proven record; unlike the performance history of fiat which seems to be the politician's way.
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| Being young today is terrible. No wonder they are pissed. |
Unfortunately, it is too late. Take a look at the Youth Misery Index. While it can be argued that it is partisan by birth, what is undeniable is that it is a quantitative method to see what the youth is experiencing. And the results are terrible. Even in other were to come up with any other algorithm, as long as it is founded on concrete data, it will look just as miserable as this (pun intended).
But nothing will repair the emotional injuries our young are experiencing at a time when they are supposed to find themselves as adults. This is the worst broken promise these people will ever hear in their life times.
Next, let me also share some comments from other LinkedIn members and my corresponding subsequent response.
What others said:
Comment - "I am all for grassroots, private community-level efforts in this regard. That would be great. Issuing a call to action is good leadership -- but the federal government's responsibility must be to address this problem at the ROOT CAUSE. A truly healthy economy will improve job prospects for everyone who wants one -- it is NOT to tax and legislate around the EFFECT alone e.g. welfare, food stamps, and other entitlement programs. Obama seems to be suggesting that legislators enact a law that will muscle businesses into hiring people for "first jobs" and/or sending tax money in that direction. Politicians, especially the far left and right ideologues, ignore moral hazards and the unintended consequences of their solutions. Be careful what you ask the government to solve; they are not good at it."
by Albert John Cacace MBA, PMP, CSM
My Response - You are right Albert. When government enacts laws, these are enforced with a gun-to-our-heads, confiscation, etc.And to think that the whole point of government is to serve us...
Comment - "I was happy to read the president describe the virtues of his first job, responsibility and hard work. He did not mention what his salary and even went so far to infer that this experience can set a young person on the right and not the wrong path. It's not too hard to imagine that if a $15/hr minimum "living wage" was imposed upon Baskin-Robbins at the time, Barack Obama and others would have been robbed of that experience and in his own words,"set them down the wrong path." When will politicians and the American public understand that raising the minimum wage robs the young, yet unskilled and primarily minority youth of this incredibly valuable life experience?"
by Dave Jenkins
My Response - You are correct Dave. Still, apprenticeship is way gone. Obama is unfortunately lost about the fact that it was business that used to gladly take on the burden of teaching those at the entry level. But after government's decades of meddling in regulations, healthcare and minimum wages, it is simply not worth it. Then, the left's solution was to give everyone a voucher for a loan to college. The fact that a higher demand would result in a higher price was also missed. So now we have millions of people with useless degrees who can't even scoop ice cream and a president who wants to go back to businesses owners to ask to please take on the now larger liability of hiring unqualified employees. Why? Well, in an election year when the left hopes to get the youth vote, it would be much nicer for them to get at least a summer job. Any CEO would have lost his job a long time ago for such failures but in government they just set ice cream photo ops.
Comment - "'This is where our communities can play a big role'. I like what your doing for the youth of your community. Instead of moaning and do nothing and wait for Obama to provide answers for your communities youth unemployment problem, you took the reign in your own hands and make things happen. Wonderful. Because if we leave all our troubles to our politicians to find solutions for us we can never get anywhere. But we need to stand up and do something about unemployment for our youths in our communities. The Summer Project is a great idea for anyone to us and it can be a success if our communities support it long term. Yes, your right, build projects and get your communities to support it. Well done."
by Emuei Ma'ia'i
My Response - Agreed Emuei, we should not rely on government. Let's abolish, say, 50% of it. And while we are at it, let's eliminate minimum wage, Obamacare and the many regulations that make it impossible for apprenticeship programs to be created by small businesses as it was the case in the past.
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| Couldn't care less. |
by Joseph Markey
My Response - You weren't the first, but I honestly don't think Obama cares that his tactics fail. He has shown to be willing to bring more and more people into the ranks of the needy.
Comment - "There are some other pieces to this problem that are rarely discussed but that I have been disturbed by as the mother of 3 children in their early 20s. Nowadays, many of those low-wage starter jobs are offered under-the-table so that business owners can save on employment taxes. If that is all a new job seeker can find they will take it, but it doesn't do anything to help their resume, add to their stake in future Social Security benefits, contribute to the tax rolls, or offer them the ability to use that employer as a reference for future jobs. And it embroils them in a dishonest system as their first introduction to the workforce. They may not even get minimum wage but can't do anything to complain about it because "at least it's a job."
Then there is the intern system that has taken hold in just about every industry - including our government - in which our young people today are expected to do 2-4 unpaid internships before they can even begin to look for a paid job in their chosen field. This means that employers can legally get unpaid labor from our youth with only the prospect that "someday maybe someone will hire you because you once worked for me for free." These young people can't be full members of the community without a paycheck and it just simply is unfair not to pay someone for their time, work and talent. As a mother and as a citizen, I am appalled by the rampant exploitation of our youth in the workforce and honestly can't understand why we don't embrace them as the light and hope for our future that they are. No wonder so many of them feel like the deck is stacked up against them - it is. Those people coming of age at this time have never known a world without war, terrorism, and economic hardship. As their elders, that is the legacy we handed down to them. The least we could do as a society is to acknowledge their right to enter the workforce with honor and to make a positive contribution to the world they have inherited."
My Response - "And it embroils them in a dishonest system as their first introduction to the workforce"
Molly, all around the world, black markets develop after the regular market becomes distorted by governments. In Venezuela, the socialist government forces businesses to sell milk at an unrealistically low price. They do this as a token in their attempt to convince citizens that they are taking action trying to make food accessible now that the economy has been destroyed by their redistributionist tactics. As a result, no milk is ever sold at the price dictated by government. If you want milk for your family, you must pay hundreds of times more. But what is missed here is that, without black markets, milk would not be available at all.
World explorer Jim Rogers talks about how black markets exist to correct problems created by bureaucrats. But we should not shoot the proverbial messenger. Rather than blaming black markets, we should solve the problems by getting rid of our failed leaders. After Obama obliterated the ability of small businesses to add full time jobs, the problem is not that your child can only get a black market job. The problem is that the people in the White House have no clue about job creation in the first place. The above article highlights this last point.
Comment - "We have an opportunity here to achieve numerous local, national, and international goals by tapping into the energy, enthusiasm, and brainpower of youth everywhere (certainly in America). The low carbon economy that we need to ramp up now (actually, yesterday) is going to be a massive net job creator. Plus, those jobs - in local-scale renewable energy installation and maintenance, or in recycle/reuse centers, for instance - will lead to much better local air and water quality for the health of everyone, especially our children. Nationally, we can look forward to producing all of our own energy, or zipping from state to state on world-class railways. Internationally, these same jobs for youth at home can reduce our greenhouse gas emissions, thereby fighting climate change and its hundreds of billions of dollars of damages to our and other economies. Think of how this would boost the morale and self-confidence of our young people engaged in this work! Now, doesn't that sound like an outstanding win-win situation?"
My Response - Joshua, Are you offering to take the few million twenty-somethings that still live in their parent's basement to Asia with you? I vote yes! They will be much better by learning from the Asian work ethic than the entitlement infected, media injected education they get here in the US. Aside from coming back as productive citizens, they will also be able to get a job over there now that Obama eliminated any chance of small business growth over here. Again, I vote yes with Gusto!
Comment - "Amazing article! Very motivating for all, the school and college students and including the CEOs and entrepreneurs, who can come forward for the young generations. America and beyond! Thank you Mr President!"
by Khalid Hasan
My Response - I am left waiting for the punch line.
Comment - "I'm wondering how many new jobs will get created when the minimum wage gets bumped up to $15/hour?"
by David M. Cox
My Response - Well, let's see... what would you say if I told you that Obama's own calculator shows negative numbers for the result?
Comment - "Well Mr President. If the jobs your so proud of creating during your tenure were real jobs and weren't the jobs that the youth used to do and now are considered "full time" employment (in which you want to raise the minimum wage so people can live off of fast food work) maybe we would have more work for our youth!!"
My Response - Tobias, You are touching on the real point here. Obama's claims for job creation is false. A person with three part time jobs that add up to more than forty hours per week are counted as three full time jobs by the government. And that is just the beginning. For the real unemployment data we need to look at the government's own U6 report. The worst part? They know their lies, thus the above article. In essence, as citizens we are the bigger fools.
Comment - "That is why you are letting companies like Carrier leave the USA and go to Mexico. That is why you are ramming TPP down our throats so that it will ensure that more money goes out of the country. How can kids get summer jobs when most of those jobs do not exist because the only jobs remaining that could be considered as summer jobs are being filled by adults trying to survive on summer job wages? Jobs that used to be great for young adults to learn about responsibility and earning their keep such as fast food places are mostly all the jobs available anymore. If they do have the good fortune and skills to get one of these jobs how will they learn about saving and investing for the future? By putting their money in a bank account that will draw NEGATIVE interest? They would have a much better opportunity of actually accumulating money from their earnings by selling drugs or in gambling than investing in the bank and I do NOT endorse either option! I do like the illustration you provided for us and I applaud the company that opened it's doors to young adults as well as the young lady who took the initiative to work for not only a wage but as an opportunity to grow in experience and skills to help others.
Unfortunately in this entitlement era we live in most employers are not concerned about employees making ends meet so when the government gives corporate handouts to banks to pay off the bad loans but no help to those who were paying on those loans but lost jobs because of the economic contraction caused by the bankers the middle class is conveniently kicked and then when corporate America gets another gift with the health care plan that enables corporations to say to their employees , " here! take this incredibly poor example of a health care plan and if you don't like it go to the government and pay more." So, yes, young adults, enjoy your summer job if you can get one and learn the beautiful lesson given to us by one of President Obama's favorite government leaders, Joseph Stalin who said that if you keep the masses poor you will have them eating right out of your hand."
by Joe Repas
My Response - Joe, Don't be misled. Obama doesn't want to create more jobs. He wants more food-stamp recipients that will continue to vote with their basic needs in mind. I agree that he should be ashamed.
Comment - "Talk is cheap, and doesn't do much to create first jobs for kids. Mr. President, your proposed 40% hike to the minimum wage will do immeasurably more to destroy first jobs than your ice cream social and your jobs programs will ever do to create them. What creates first jobs for kids is leaving the business community free to offer whatever jobs they can come up with at whatever wage they can afford - and then the kids can decide if they want them or not. A first job that is real work may be worth having even on a volunteer basis. Put it on your resume and move up to a paying job as soon as you can. It is what politicians like you do for your staffers, right? If it's good enough for politics, then why not for business? One wealthy entrepreneur tells of his first job where he actually paid his friend's dad $0.25/hr to let him work! He credits that man with teaching him what it takes to become rich. (See Rich Dad, Poor Dad) Minimum wage is tragic for exactly this reason - it hurts primarily those who are least able to get a good-paying job."
by Dave Wahlstedt
My Response - Well said. Obama's rhetoric is cheap.
Comment - "This has to be the stupidest article I've read in a long while. There are literally hundreds of first jobs out there, albeit they are not glamorous; however, they do offer a paycheck and some real-world experience. The problem is teenagers want to get a first job that pays them what their mom and dad make, but they don'r understand that mom and dad had to work for 20+ years to get to that level. Many teens today seem to think that entry-level positions should pay them $15/hr+, and don't understand the value of a first job. Reading the article, it appeared as if someone had actually complained that scooping ice cream was tough on the wrists? Seriously?"
by Ian Porter
My Response - I agree with the stupidity of the article part. Now that Obama is rather talking about the twenty-somethings that are living at home with their parents and for whom a college degree has been totally useless. Look at the labor market participation rate by age. 20 to 30 year olds have taken it in the stomach. The reason? Well, those over 55 can't retire and are thus willing to take any number of low skill part-time jobs; the same jobs that the twenty-somethings would normally get. Obama knows that their lies about full-employment fail scrutiny once we get just below the surface. In a nutshell, this is a Hail-Mary pass; a last minute attempt to patch the ship's gaping holes with a couple more band-aids before he exists the White House and gets a chance to blame the next president.
Comment - "Obama is a man who never had a real job, never qualified for one. His education wasnt earned, rather due to exploitation of affirmative action. His only profession was a community organizer (a suspect occupation consisting of agitating complainers to blame white people). He is a liar, a fraud, and NEVER would have been hired by any sane HR Dept."
by jason b
My Response - Absolutely correct. He should be ashamed from trying to pass the hot potato to business owners last minute.
Comment - "Oh gees....so now he wants adults that have learned how to survive by changing careers, to coddle first timers? No Thank You. My sweet mother taught me that I learn by mistakes. Let them grow up Obama! They will live and learn. That is how other Americans did it in the past in case you're not aware."
by Marshall Dominguez
My Response - Well, Obama grew up but didn't learn...
Comment - "Great. The président Obama have exactly words which can make our dreams and our idea come true"
by Fogaing Raissa
My Response - I am having a hard time with what part of food-stamps makes dreams come true.
Comment - "When I read this article and the responses it makes me sad how some individuals seems to overlook the message behind this article. It's about opportunities or options for communities to look at to help their youths unemployment problem. If summer projects doesn't or wont work for communities youth unemployment;then why not look for other projects? The focal point here is 'community involvement plus helping youths in communities. Community involvement isn't a no brainer idea ; it's about critical thinking and thinking positive instead of being narrow minded and personal about ' an initiative that can be use/developed for good causes for communities'. To build our own ways in this world instead of relying on politicians isn't a traditional idea - many have lived and survived this way then / and still do today. Businesses cannot survive without consumers ; and that's the Community. It isn't about Obama that's why I chose to respond to this article; it's about ' PEOPLE MAKING A DIFFERENCE FOR THEIR YOUTHS AND COMMUNITIES'. WE STILL RESPECT OUR PRIME MINISTER REGARDLESS."
My Response - Unfortunately, it is about Obama. Americans don't need last minute electoral pandering to work in unity. We have been doing this exact thing for over two hundred years. But the redistributionists and agitators have gained control. So now we are divided and roughing it. But don't be misled. As soon as the government gets out of the way again, we will rebuild and innovate with Gusto. So don't be sad for us. Be sad for those in government who think they have made America pay a high price for its success.
Comment - "I'm from Brazil, and I remember when I search for the my first job fifty years ago, it was much difficulty. Employers in that era needs people with professional experiences, as today unfortunately, and young people without experience didn't has opportunities to prove theirs qualities. I think it's is necessary to create local laws to change this situation, where companies must to show a minimum percentage of young people in theirs job list, and at the same time to protect the young from exploration on the work."
My Response - Jorge, In the US we do have to keep in mind the people we hire. We tally females, fat people, skinny people, ex-convicts, the elder, gays, the handicapped, Blacks, American Indians, Jews, Latinos, Asians, the disadvantaged, the marginalized, and more recently Muslims, So what's just one more group on the list? What if we add the young? Well not much other than the fact that the government enforces rules with a gun to our heads, that it is excessive regulation that has created the problems Obama is pandering about, and that there would be no one left out of the list. Well, maybe someone will suggest we add penguins and whales to the list at some point in the future.
Comment - "Good article based on real facts, indeed. My daughter graduated one year ago with a B.S. degree. Did internship and had numerous interviews in a corporate environment. But has not landed the permanent position, as of yet. On the other hand, my son ten years her senior with a BBA degree landed a job based on the old traditional cycle (within months). Something is definitely wrong with how the system is functioning now, it isn't. This is one of the major reasons default on student loans are at a all-time high. These young, want to be professionals, are struggling economically. Their credit scores, which are now a part of the interview/selection process thanks to the republicans, will keep them from landing the coveted position which contains the appropriate salary to pay back that loan. Without that coveted position, not able to qualify for a mortgage, because their credit score is too low. So these two young people did all that they were told by this system to do in order to be a productive and dependable citizen in this country, they were guaranteed these rights, told it was the American way of doing it right and this is how we repay them? This system is still broken thanks to republicans stealthy genocide practices during the 'W' Bush years. This is no longer capitalism, it's obstructionism and oppressing our future generation. This needs to end now."
by BEN CARTER
My Response - "they were guaranteed these rights," I agree, The facts are clear. Obama keeps lying to people about rights that don't exist. So of course that they'll end disappointed. No one gets trophies for participation in real life. He knows that. And now you seem to suggest that he has even told people there was some sort of "genocide" that caused a break in the US system. He should be ashamed of himself for creating such stories and for pushing so many people into poverty and a terrible education. We need to help the poor and make sure guys like Obama don't win elections by lying to the uninformed.
Comment - "Obama learned nothing from his job at Baskin-Robbins, except how to GET OVER. His policies are what are killing "1st jobs," and that moron is too stupid to realize it."
My Response - So here are some facts to help your case. By the way, all data is publicly available and supplied by the Fed. Just go to the Federal Reserve Bank of St. Luis website (FRED) and you will get more data on Obama's failures than you ever dreamed.
https://research.stlouisfed.org/fred2/series/CIVPART
All the massive Labor Force participation gains from the Regan era remained in a stable range through two normal recessions and one great recession. Then, out of nowhere, the end of the recession brought an incredibly large decline instead of the expected recovery. All modern era gains have been wiped out. This is Obama's legacy and no one else's. But Obama's supporters suggest that the drop is due to retiring people. Well, if this is the case, why are women holding on to the Regan gains while males are getting killed?
https://research.stlouisfed.org/fred2/series/LNU01300002
Despite the fact that women had been steadily gaining on men, total participation had gone up. But Obama change all that.
https://research.stlouisfed.org/fred2/series/LNU01300001
And as for the elderly retiring, the reality is different. Those over 55 are working much more than they did during the Bush years.
https://research.stlouisfed.org/fred2/series/LNS11324230
https://research.stlouisfed.org/fred2/series/ISRATIO
And why could this be happening? Well, for one, business inventories continue to go up when compared to sales. This is unexpected because the recession made businesses more efficient rather than less. Businesses are supposed to achieve more with less, which is what they did during the booming Bush years. Every year, they were able to reduce balance sheet burden while increasing sales. But the trend has reversed very rapidly after Obama begun messing with businesses. It is clear that managers are having a hard time navigating the storm. Does this mean that businesses are not sufficiently excited about Obama's performance as to want to hire people? Well, yes. Businesses have no confidence in Obama's legacy. For the nest graph, I will tell you what to enter at the Fed's site and after you get the three data sets you will need to write the formula below. The reason why I don't just send a link is because the Fed's site does not hold temporary calculations. What I am looking for is the willingness of businesses to invest capital for the long term. This is wt requires the highest degree of confidence in the economy now and later. It is also the best indicator for new job creation. Get the "Real Net Domestic Fixed Investment". This will be labelled "a" in the formula bar. Now get the "Real Gross Domestic Product". This will be labelled "b" in the formula. Finally get the "Net Corporate Dividend Payments". This will be labelled "c" in the formula. Just as an FYI, "Real" means adjusted for inflation in Fed-speak. Now write "(a/b)-(c/b)" in the "create your own data transformation" section. What you are doing is looking at what portion of profits was used for long term investments. You are also making sure to adjust for economic growth as measured by inflation adjusted GDP. The resulting chart shows that long term capital investment has been in the toilet. From the data perspective, The Obama presidency is just as bad as the great recession. And I better stop here. I am sure that I have already gone beyond what most would tolerate in a single tread. Unfortunately. the data from this president is so bad that it is hard to hide. The best economists in the world agree. These are the same economists hired by our government to control national liquidity. Despite still giving more radiations and medicine than to any other patient in history, the Fed has not managed to either reduce their one trillion bond balance sheet nor increase interest rates by more than a quarter point. At the present moment, they are pushing lower interest rates than at any other time, even after the meager increase. Yet, claims of a healthy patient are sounded everywhere. If uncle Sam is as healthy as they say, why don't we disconnect him from the radiation machine and stop the cocktail of medications? Enough said.
 |
| Civilian Labor Force Participation Rate |
All the massive Labor Force participation gains from the Regan era remained in a stable range through two normal recessions and one great recession. Then, out of nowhere, the end of the recession brought an incredibly large decline instead of the expected recovery. All modern era gains have been wiped out. This is Obama's legacy and no one else's. But Obama's supporters suggest that the drop is due to retiring people. Well, if this is the case, why are women holding on to the Regan gains while males are getting killed?
 |
| Civilian Labor Force Participation Rate: Women |
Despite the fact that women had been steadily gaining on men, total participation had gone up. But Obama change all that.
 |
| Civilian Labor Force Participation Rate: Men |
And as for the elderly retiring, the reality is different. Those over 55 are working much more than they did during the Bush years.
 |
| Civilian Labor Force Participation Rate: 55 years and over |
https://research.stlouisfed.org/fred2/series/ISRATIO
And why could this be happening? Well, for one, business inventories continue to go up when compared to sales. This is unexpected because the recession made businesses more efficient rather than less. Businesses are supposed to achieve more with less, which is what they did during the booming Bush years. Every year, they were able to reduce balance sheet burden while increasing sales. But the trend has reversed very rapidly after Obama begun messing with businesses. It is clear that managers are having a hard time navigating the storm. Does this mean that businesses are not sufficiently excited about Obama's performance as to want to hire people? Well, yes. Businesses have no confidence in Obama's legacy. For the nest graph, I will tell you what to enter at the Fed's site and after you get the three data sets you will need to write the formula below. The reason why I don't just send a link is because the Fed's site does not hold temporary calculations. What I am looking for is the willingness of businesses to invest capital for the long term. This is wt requires the highest degree of confidence in the economy now and later. It is also the best indicator for new job creation. Get the "Real Net Domestic Fixed Investment". This will be labelled "a" in the formula bar. Now get the "Real Gross Domestic Product". This will be labelled "b" in the formula. Finally get the "Net Corporate Dividend Payments". This will be labelled "c" in the formula. Just as an FYI, "Real" means adjusted for inflation in Fed-speak. Now write "(a/b)-(c/b)" in the "create your own data transformation" section. What you are doing is looking at what portion of profits was used for long term investments. You are also making sure to adjust for economic growth as measured by inflation adjusted GDP. The resulting chart shows that long term capital investment has been in the toilet. From the data perspective, The Obama presidency is just as bad as the great recession. And I better stop here. I am sure that I have already gone beyond what most would tolerate in a single tread. Unfortunately. the data from this president is so bad that it is hard to hide. The best economists in the world agree. These are the same economists hired by our government to control national liquidity. Despite still giving more radiations and medicine than to any other patient in history, the Fed has not managed to either reduce their one trillion bond balance sheet nor increase interest rates by more than a quarter point. At the present moment, they are pushing lower interest rates than at any other time, even after the meager increase. Yet, claims of a healthy patient are sounded everywhere. If uncle Sam is as healthy as they say, why don't we disconnect him from the radiation machine and stop the cocktail of medications? Enough said.
Comment - "I'm confused. On the one hand, you say the minimum wage needs to be a "living wage", at least $15/hour. And now you bemoan the fact that completely unskilled, fairly unmotivated, "first time job seekers" can't find a job? Are you surprised? As a business owner, there is no way I would spend $15/hour on a gamble, who most likely is leaving after the summer is over. The reason business hire teens during the summer is because they were cheap labor. The cost to a business to "train" a temp employee is huge. Then you want to force the business to pay more for these individuals who will undoubtedly leave. Welcome to unintended counsequences"
by Amy Curtis
My Response - Great points Amy.
$15.00 base. Then throw in about $3.30 in social security, medicare and other payroll costs. Then add about $1.30 for your portion of Obamacare if the new employee exceeds part time. Plus workers comp. Then, think of the direct and indirect costs if they end up claiming unemployment after they leave and then ponder that it may be impossible to fight them on the merits of their claim. Or how about the employees that stay and accrue sick or vacation pay?
These facts mean that by the time you are done, the new marginal employee has to have a direct or indirect effect on an increase in sales of approximately $200 per hour (annualized to $360,000 for 35 hours worked per week) for a typical small business. This is based on nets margins of about 10 points, which many small businesses don't reach after paying a standard market salary to the owner-operator.
Yes, some could argue that a temporary marginal employee should be paid from gross margins rather than net margins, which would require an increase of $75,000 additional annualized sales. They would argue that there may not be additional operational expenses directly related to the new hire in cases when there is slack in business furniture, space, etc. But even if such was possible for a single employee in a specific situation, it is not probable in all scenarios. So in the end, the highest probable scenario is one where a marginal employee would have to add sales closer to the $360,000 annualized.
Mr. Obama makes the mistake of assuming that employees are free and that an operating business has less employees that it must have. But even when employees have to work harder than before (after their team mates were fired during the Obama presidency or the previous recession), the existing team is in fact doing everything needed to keep the business going. How do I know? Because if it wasn't the case, the business would have closed its doors already.
In other words, there is no way around it. Regardless of the great cheer for doing the right thing, this president will fail at this as he has failed at all other projects he has attempted. His are great words of promise that lack any chance of success. At a fundamental level, Mr. Obama's failures go back to the fact that he does not understand the basics.
$15.00 base. Then throw in about $3.30 in social security, medicare and other payroll costs. Then add about $1.30 for your portion of Obamacare if the new employee exceeds part time. Plus workers comp. Then, think of the direct and indirect costs if they end up claiming unemployment after they leave and then ponder that it may be impossible to fight them on the merits of their claim. Or how about the employees that stay and accrue sick or vacation pay?
These facts mean that by the time you are done, the new marginal employee has to have a direct or indirect effect on an increase in sales of approximately $200 per hour (annualized to $360,000 for 35 hours worked per week) for a typical small business. This is based on nets margins of about 10 points, which many small businesses don't reach after paying a standard market salary to the owner-operator.
Yes, some could argue that a temporary marginal employee should be paid from gross margins rather than net margins, which would require an increase of $75,000 additional annualized sales. They would argue that there may not be additional operational expenses directly related to the new hire in cases when there is slack in business furniture, space, etc. But even if such was possible for a single employee in a specific situation, it is not probable in all scenarios. So in the end, the highest probable scenario is one where a marginal employee would have to add sales closer to the $360,000 annualized.
Mr. Obama makes the mistake of assuming that employees are free and that an operating business has less employees that it must have. But even when employees have to work harder than before (after their team mates were fired during the Obama presidency or the previous recession), the existing team is in fact doing everything needed to keep the business going. How do I know? Because if it wasn't the case, the business would have closed its doors already.
In other words, there is no way around it. Regardless of the great cheer for doing the right thing, this president will fail at this as he has failed at all other projects he has attempted. His are great words of promise that lack any chance of success. At a fundamental level, Mr. Obama's failures go back to the fact that he does not understand the basics.
