Job Growth Is Essential for Economic Growth
We are in the midst of a jobless economic recovery. It’s a trend that’s been shaping for decades. NPR addressed this in their morning news. They helped listeners understand that recessions traditionally end with millions of small businesses owners turning the economic corner, growing sales, hiring people, driving profits. But not now. Why is this? Are we more efficient? If the burden of hiring more people too scary and risky at this stage? Has the economic landscape changed forever? We appreciate your input here in the community which continues to attract thousands of entrepreneurs every month.
I’ve shied away from taking any political positions here at the WealthNet Community. But today I have to make a comment about job growth, or lack thereof. Why don’t most people, especially politicians, especially presidents, get the job growth is the key to economic growth? If you buy into this simple premise, then you’ll probably agree that the federal stimulus money isn’t finding it’s way to small businesses right now.
Therefore, job growth sucks. Big banks are getting money. Badly broken, poorly run car companies are getting money. And now it appears America’s Social Security recipients might get a small bonus check for $250. And please stand tall for the big health-care suck that will absolutely torment small businesses if this health care monstrosity passes. Look at what is happening to small businesses, those that provide the vast majority of jobs in this country!
Are we going to look like France several years from now? Too many people clamoring for the growing number of government jobs, too many people unemployed, limited job growth, high taxes, and dismal economic growth? In 2006 Jack Welch addressed this issue in his book Winning: The Answers. To be fair, Germany and Italy are right in there with France. Perhaps Great Britain.
The bottom line is if the U.S. continues on this more government, higher taxes, “redistribute wealth” mentality, we’ll be in the same boat as our European allies. Welch quotes Joel Kotkin’s research at the New America Foundation stating that the U.S. economy had created fifty-seven million new jobs over the prior thirty-five years. In the same period, Europe had created only four million jobs. And most of those jobs were in government! (Europe combined has about the same Gross Domestic Product as the U.S.)
Does this help you understand Europe’s 10% unemployment rate? Can you understand why our unemployment rate hovering right below 10% today might be a problem for a long, long time? Do we really know what the unemployment rate is today? Do you know anyone unemployed? It’s painful to be in that position.
Here’s what I would like to see happening soon…
1. Politicians understand and act in a way that we see new legislation that makes is easier to start, fund, and grow a successful business. (Small business that is which can mean under $1 billion in sales for some people’s standards.)
2. Everyone understands that the way our government spends money today is not acceptable and to take action by communicating your thoughts to elected officials.
3. Banks and lenders make capital available to small businesses that intend to hire more people and create job expansion.
Entrepreneurs are the lifeblood of this economy. To stay in the game and be successful enough to hire new talent and grow we must be disciplined with our business planning, capital, and execution of marketing, sales, finance and people.
What are you doing to impact job growth? Starting, funding, marketing and growing your business today? How are you fighting for and winning more market share. Are you reinvesting in your business and hiring people? Please share your comments and thoughts.
Clifford Jones, Founder
WealthNet Partners, LLC
“Discover The Art of Business Development”
Scottsdale, Arizona
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