Our President Elect has gone on record saying that he is planning to save or create 2.5 million jobs by 2011. In his radio address he said he would try to create those jobs by 2011. People are already talking that it could be done and the concept of a “V” (as in “V for Victory”) turn around would mean massive changes in our economy to shoot the employment rate up an additional 2,500,000 jobs. Think of us being on the first side of the “V” sliding down and then launching back up. By the way, it was Winston Churchill who in World War II popularized in the modern era the use of the two finger sign for victory.
Getting back to our chances of a turnaround happening…
Dramatic turnarounds like that have happened in the past unfortunately the last time was around 1974, under different economic conditions and it took about three years to come out of it. Out last few recoveries were in the economy but it did not result in more jobs being created. In fact, the number of jobs dwindled in 2002 and 2003 thanks to outsourcing to other countries.
In order for a rocket-launch-about-face economic recovery to happen, concrete incentives have to be in place to get business tax breaks so they can start manufacturing, incentives so they can hire people and in some cases some subsidies similar to what the banks are getting and the auto industry wants.
Currently, the banks are sitting on their cash and they aren’t kicking it down to the people that need it. To be fair, if they start kicking it down, we don’t want to start a new cycle of booming just to have it bust on us as it did the last time.
Interest rates are low, that is good. There is a lot of cash out there, that is good. Something needs to be done to get the money to people, lend it to them at the low interest rates so they can get their businesses started up. People will need to be working to make money so they can start visiting these new start-up businesses so they can spend their money there.
We are all hoping that the President Elect’s advisors come up with something for all of us. I think the auto industry does need a shot in the arm. Once they have been financially innoculated, we need to get to the real illness – getting the unemployed working and getting business back in America.
Other nations are ready to invest in us if we can keep be reasonable with our costs. It is basic economic common sense coupled with the fact that we have a stable workforce, a stable economy and we aren’t going to run off with anybody’s investments. The same may not be true for some other countries. We also need to make money here because despite other people’s complaints and grandstanding, we are a nation of consumers and we love to shop and buy things. If we don’t have the money or credit to do that, there aren’t a lot of other countries out there who are stepping up to pick up our shopping slack (and that includes billionaires from around the world as well).
Our best thoughts to you President Elect Obama and your advisors. If you need any suggestions or help, please give me a call or drop me an email.
If there are any billionaires who also are looking for consulting and suggestions, please let me know as well!
Kim Isaac Greenblatt
Talking about V Shape Recovery for America.
