Unemployment will continue to be a major obstacle facing economic recovery for years to come. The confusion and deception increases dissatisfaction for millions of American who fight to survive at this point. This feature is in direct conflict with what we should know about the cultural characteristics of a pure successful business. A business in today’s economy is predominantly a flat organization with quick decision-making, where risk taking is encouraged and failure is merely education.
Congress continually extended unemployment benefits to incredibly long, unprecedented amounts. This created a consequence of said action and added to our enormous deficit. A good percentage of the unemployed populations have simply given up seeking a job now, because the job market is waterlogged. In many instances, people simply were not laid off from their jobs. Those positions no longer exist at all.
Entire sectors of skill sets are not considered necessary now by companies because they are either too expensive to keep on the payroll, or they have downsized to the point of not being able to retool back up to their prior levels of production where those skills are needed again. The people with those skill sets are now finding that they literally have no qualifications or are overqualified for part-time work and cannot find anything in their sector anymore.
As this number of unemployed (or even the “working unemployed”) increases, so too does the increased need for longer unemployment. Whether or not this is needed as a social program is not debatable at this point; it is here and this is the current state of things. However, here is the catch with unemployment: you have to pay back your unemployment when you finally do get work or reach the termination time for your benefits. This leads to a further drain on whatever meager pay these folks can get.
Therefore, in the case of unemployment, it created a feedback loop, which caused Congress to, undoubtedly, stop paying unemployment benefits. This action will further create a short-term drain whereby other programs might need to be downsized or nixed altogether, as well as help perpetuate more in the job market to give up.
The U.S. also has been artificially keeping the cost of inflation down by printing more money, while the government buys down the inflation cost. Remember the 1990s? Fed Chairman Alan Greenspan and former President Bill Clinton, even though jobs were plentiful and the economy appeared healthy, were concerned if interest rates were raised, would it affect the economy.
A properly managed economy works on checks and balances, and those balances are during the good times when you raise the cost of inflation, such as; interest rates which controls the rate of growth by slowing it down so that sound decisions can be made and eliminate taking unnecessary risks. Then, should there be a downturn in the economy, due to those risks that were not taken, is not as severe while a slight reduction in interest rates will restore confidence and the economy gets back on track.
However, the U.S. economy is being managed today by two previous events: The Great Depression and the high interest rates brought on in the 1970s. Think about all we have heard about in the past year is the Great Depression. In addition, the 1970s, 1980s and 1990s were nothing but high interest rates. The Federal Reserve is playing on our fears of these two events (brainwashing), as a means to get us to go along with their agenda, which has resulted in one catastrophic event after another in regards to the financial health of the United States.
We have been programmed during the good times to spend, spend, spend, and take out more credit, when in fact, during good times, both professionally and personally, we should actually be more frugal and during the bad times increase our spending so business expansion can balance things out and minimize the impact of our economy.
It is a well-known fact that all truly successful people set goals. If hard-working Americans who are struggling right now wish to be more successful than others, then all goals must be realistic, short term, measurable and obtainable within the bounds of our own God-given perception.