Slow Growth and High Unemployment for Years to Come

Posted: August 24th, 2011 | Author: | Filed under: Career Coach, Career Transition Networking, job growth rate | Tags: , , , | Comments Off on Slow Growth and High Unemployment for Years to Come

I woke up this morning, went for a walk and grabbed my coffee only to nearly choke when I read the news feeds on my iPad. According to USA Today, the budget deficit this year will remain at about $1.3 trillion, the report says, marking the third straight year of $1 trillion-plus deficits. That’s 8.5% of the nation’s economy.  What are our lawmakers doing?  This was included in a story that caught my eye because the headline was “Budget agency: Jobless rate above 8% for years”

Budget deficit+Jobless Rate = Slow Growth

Does anyone notice a connection here? The ‘experts’ predict the jobless rate to fall to 8.9% by the end of 2011 yet hover above 8% until 2014. How is that they can predict there will be less than 0.9% job growth in the next 3 years and 4 months yet they can’t predict how the hell to fix it? I’d like them to zone into what the growth factors are that contribute to the 0.9% and invest in those sectors of the economy so rather than simply falling back on an 8% jobless rate, we change it. The U.S. economy is growing at an anemic pace as it is, can it possibly get slower?

Do Something Different

When I coach clients about their job search strategy what I focus on first is to start with a coachable goal, this is the #1 reason my success rate is above 90% vs. an industry average of 38%. If you start with a coachable goal and each week we coach towards achieving that goal, together we will have success. Is this the case with America’s budget and job growth rate today? Are the lawmakers starting with an achievable goal or a goal that’s unrealistic?

Say the goal was to reach a job growth rate of 1.3%, that seems achievable; certainly far more achievable than 5%, right? Once we hit 1.3% let’s go for 2% followed by 3% and so on. America moved into The Great Recession over time and we have to come out of it that way as well. The approach lawmakers seem to be taking, in my opinion, is to simply state a fact that we’re in this and while “we’re doing our best” this is just what it is until 2014. I say “Do Something Different”.

8.5% Budget Deficit?

Time to cut costs and locate new sources of revenue ladies and gentleman. If you want to know what this is like, forget the trillions of dollars politicians and media throw around. Plain and simple, the government is spending more than it’s bringing in – the clear definition of a deficit and has little plan for how to clean it up. If your family spent 8.5% more than it brought it, consistently, what do you think would happen? Would your credit card raise your limit to allow you to continue spending and go further into debt? Unlikely. That’s precisely what the Congress and President Obama have done by raising the debt ceiling – the equivalent of a U.S. national credit card limit – in order for America to cover its bills. 

Jobless rates and budget deficits above 8%. Do Something Different.