The greatest risks to our  economic recovery and continued improvement in the number of jobs are the brewing financial crisis in Europe and oil prices.  In our world economy, trouble in Italy, Greece, Spain and Portugal could push the U.S. back into recession and trigger more government deficit spending to stem a new tide of layoffs. Oil prices are artificially high right now but any shock in the middle east like Israel or others attacking Iran could move prices 50% higher overnight. Our economy runs on oil and even a moderate period at very high prices combined with stock market uncertainty would start a new round of layoffs shortly thereafter.

Lets enjoy the holidays and hope the new year brings peace and prosperity everywhere.

Plenty of  Jobs for Low Pay– If you can afford to take a $10 or less per hour job  you should be able to find work quickly in most areas of the country.  As long as employers can squeeze more productivity or work hours out of existing employees serious increases in the number of jobs that can support a family are unlikely. With the average number of work hours rising we getting little closer to some hiring for reasonable paying jobs.

Governments should be using their unemployment insurance benefits smarter. They should provide people partial benefits for a limited period of time if they are willing to accept low wage positions.  It would put more people in the workforce which would help them be more employable when other jobs are available.  It would give them more money than they are  receiving now with most of that money going directly into our economy as they spend it.  It would provide the workers some opportunity for promotion at their place of employment and reduce public spending on unemployment benefits.  Granted its a form of government subsidy for business.   But this carrot for business should also come with a new emphasis to use local law enforcement to find and enforce the laws against hiring workers  “off the books”.  This creates an underground economy that pays no taxes or social security and often hires those illegally in this country.

Time does not allow me to provide a detailed explanation of the large number of contributing factors to our situation; but here are a few of the big ones.  The American public’s spending is 70% of the economy and they are paying down debt, not buying goods and services as they once did, some are out of work or underemployed after the economy crashed in 2008.  When they do buy things they are less expensive items made with cheap overseas-labor.  Big business is not putting its substantial profits to work on new initiatives.  They have invested in automation and software that reduces staffing needs and is not increasing dividends for its owners who may spend the funds in the economy.  The country needs fair trade not free trade with our economic enemy’s.  Nearly every health care innovation that helps rescue the ill involves another huge bite of funds from us and concentrates the proceeds in very few hands.  The sad part is that we know how to prevent many of the conditions we try to later fix at a very high price.  Poor citizens are having more children than the affluent.  Not enough of our technical innovations are  being used to lower the cost of education at all levels.  Its up to all of us let our leaders know that we are unhappy and won’t accept the simplistic answers they provide or blaming of someone else.  If we are going to solve some of these big problems, we need to first admit what they are then craft solutions that minimize the real pain fixing them will cause.

Be well and don’t forget to vote on election day.