Economic Swings

The President said the private sector was doing OK. He said government jobs were in a slump and have not climbed back to where they were. Why? This is because receipts of most governmental units are down in America. The recession hit them hard. Because they cannot deficit spend for operations, they reduced function and jobs. The federal government can print money; other governments in the USA cannot.

So, police officers and firemen were laid off; so too were teachers, social workers, prison guards and a jillion other job titles and worker classifications. Some of these positions may be gone forever, but not likely. Population growth and growth of social complexity means government functions are a growth industry of sorts.

Meanwhile, that industry is non-growth. To the extent government layoffs exist, private sector job growth is offset. So, the private sector in the past month may have created 150,000 jobs, but governments laid off 80,000 for a net of 70,000 new jobs for the month of May.

That is the reasoning behind the President’s remarks in a press conference held Friday, June 8.

The press hounds, ideologues and republicans jumped on the President’s comments saying he was out of touch. Hardly. And they know it. They are making political food out of thin air. And again, they know it. But why do they do that? Because they know the American voter doesn’t understand basic economics. They are prone to believe what they are told. Especially if it is crouched in fear and trembling.

People respond to alarms. They wonder if a hurt is on its way toward them. Chicken Little did attract attention, after all! And politicians seeking power (votes) don’t care if the facts don’t back them up. They know that voters often respond by knee jerk; to ward off a low blow, don’t you know?

I think American voters have more moxie than that. They understand when they are being suckered. Usually, the first clue of a sucker puncher is the tenor of his voice; is it demanding, yelling, shouting, alarming?

In contrast we should be seeking the calm voice. The voice that tells a story of facts and connections and logic. A voice that informs rather than markets. A voice that educates. A voice that asks questions, poses a challenge and seeks answers. From a lot of sources. Not just a few.

I like President Obama’s style. He trusts the American people. He knows they are intelligent and can handle the truth. He knows we face problems and won’t paper over them. Instead he faces them, for you and me. He lets us know he sees the problem and is looking for answers. He doesn’t have them all; he knows together we do have the answers. But we have to discuss matters openly and honestly like an open society should. We can handle the truth. Perhaps some outsiders can’t?

In the words of age old masters: “You can be a part of the problem or a part of the solution; but you cannot be both.”

Which will you be? A naysayer or a possibility sayer? A condemner or an encourager?

These aren’t Obama’s problems. They are ours. Yours and mine. We need to own them and fix them; or at least support those who are working on our behalf to do so.

Will you lend your hand to this enterprise?

June 10, 2012