The answer to unemployment
Written by Michael Vass
At the State of the Union Address President Obama stated clearly that he understood that jobs and the economy were the primary concerns of the American public. He then went on to forcibly pass the Health Care Reform. After a year of effort that might be understandable to some, mostly Democrats not up for re-election. The next thing the Obama Administration is doing is … immigration reform, Cap & Trade, and universal registration. So how is that working out locally?
Taking a look at Binghamton New York, unemployment is roughly 9.3 - 9.7% depending on which organization you get your stats from, and if you are looking at actual numbers, revised numbers, or estimates. No matter how the numbers are looked at they are not good. But there are 2 silver linings for those that are unemployed.
The first answer comes from Rep. Maurice Hinchey. His view is to increase the amount of time that people can get unemployent benefits.
Considering that currently taking all benefits available means that a person can be without a job for 24 months, extending the time they can be without a job seems like avoidance of the problem. The issue is that jobs are not being created. That was without the added burden of increased taxes and mandatory health insurance that will now enter the equation due to the Health Care Reform, which Rep. Hinchey, Senator Schumer, and Senator Gillibrand supported.
Plus there is the growing list of taxable items proposed by Gov. Patterson. Taxes on soda, movie tickets, beer, wine, car rentals, weight loss, haircuts, cable and satellite tv, clothing and shoes, even car purchases are all planned to go higher. How many industries and small businesses will be affected by this list? Which is hardly the complete list, nor does it include items like the 7.9% increase in property taxes Endicott, NY and other areas across the state are planning to impose.
But what if Rep. Hinchey can get even more unemployment checks to flow? And if Sen. Schumer can get his China currency Bill to pass. Plus add in all 235 jobs coming from the Obama Stimulus - at a cost of $20 million from the Obama Stimulus. Even add the attack on cybercrime that Sen. Gillibrand has promised to do, which is unclear exactly how it will create jobs. Will any of this drop the unemployment rate below 9%? Below 8.5%? At all? Especially as we factor in the higher costs to businesses and individuals?
Well actually it might. This is where the 2nd item mentioned above comes in.
This week 700 people will drop from the unemployment rolls in Binghamton alone. 46,000 in New York State this week. In coming weeks those numbers will increase. But as they increase the number of unemployed, as counted by the Government, decreases. Because those not getting benefits, specifically the initial claims but to a lesser degree all claims, are not counted as unemployed. They go to another category which is far less discussed, the underemployed.
The underemployment rate for NY as of Feb 5th 2010 was 14.3% (data not available on a city basis). It’s a figure that well may go higher. Except it too does not include everyone that is out of work. But it is closer to the truth.
Considering that the proposals for dealing with unemployment include the Obama Stimulus, the Obama Stimulus 2 (proposed in Congress for $150 billion that increases the national debt), making Chinese products more expensive via tariffs, punishing cybercriminals if and when they are caught, and extending unemployment benefits (that need to be paid for - higher taxes which impede job creation), the net outlook is not impressive.
Why does New York State matter? It is the 3rd largest State and economy in the U.S. The economy of New York State is 16th in the world (as of 2007) just behind the nation of Turkey. If these are the problems and solutions being offered to such a huge part of the nation’s vitality how much better off can we expect the rest of the nation to be.
Is this the “Change” that was promised in the 2006 and 2008 elections? Is this the focus on jobs and the economy that was promised in the State of the Union Address? Is this the very best we can expect from our elected officials in Congress? Most importantly, does any of this sound like an answer to unemployment?
