The Economist blames the technology for the rise of the top 1% and the decline of the Middle Class. It’s a convenient theory but untrue, up until the Financial Crash, the Middle Class was still prospering, but the schemes perpetrated by the Banking and Insurance Industries, created a real wealth transfer to the top 1%. The problem is how to reinstate the Middle Class before they become dissatisfied and rebel.
According to Larry Summers, 1-7 young men , ages 25-54 are part of the unemployed. This statement was Corroborated by yesterday’s NY Times, ( 2/2/14)”Reopening a door to the Young”. Sure, new graduates may lack technical skill. But employers should still be harnessing their eagerness to learn. I know that to be true from personal experience! When I was a VP at Bankers Trust, none of the recent college grads I hired, had a knowledge of Banking. They were bright, inquisitive kids, all 7 of them . They were tasked with understanding Banker’s Back Office operation in order to create Policy and stop losses and identify Fraud. Our “Mission was Accomplished”.
I have a suggestion for Obama as he uses the “Bully Pulpit” to drum up support for a $10.10 minimum wage, ask your Corporate Constituents, to take on risk and start hiring, instead of firing personnel. That would get the job market percolating.
As I chatted with folks at a track meet Saturday, 2/1/14, while my grandson was competing, I was told that IBM could not sell their products and, they too, were about to lay off staff. Where is it written it’s OK to play with the ” People’s” Money, but businesses no longer have an obligation to their investors or their Country to manufacture different products and upgrade their technology? At a time when austerity is proven to be ‘ bad policy”. At a time when business borrowing is at an all time low, why not invest in creating new products and invest in people and systems using new ideas?
Looking at money, doesn’t make it grow and holding on to it is bad for business. I was taught that business must continue to grow or it will die. If Corporations have become so stultified they can no longer conceive of new ideas, they will die.
We always have choices.