Friday, July 30, 2010

A more patriotic approach needed to fix what ails America's economy

Everyone from Rush Limbaugh to some of my friends like to point out that it is not the role of businesses to provide jobs. In normal times, I would agree.

These are not normal times.

Look, during past wars, businesses refitted their production lines to serve the military. They stopped making goods for civilians in order to supply our soldiers with ammo and other items needed to successfully defend our country. Their missions changed from making profits via the private sector to helping to uphold our way of life. From housewives to Hollywood, everyone was behind the war efforts because losing was not an outcome that served any American's interest.

What I am about to say is the most important point I have made in over 300 posts. The economic crisis we're in might not feel entirely like a national emergency but it is. We should not wait until the enemy is deeply entrenched in every neighborhood across this land before fighting back with everything we have.

Businesses, particularly profitable ones, have a new responsibility and it includes creating jobs just as it involved making tanks instead of cars in World War II. It is no longer acceptable for anyone to say it's not the role of any entity to create jobs. It also isn't constructive to continue to lie about why so many workers were laid off in the first place. Too many corporations over reacted to the recession and exploited millions of their most vulnerable workers, making the recession far worse than it needed to be. That is a fact. It is time for corporations that went too far to make up for their part in bringing down the entire economy, not to mention the personal lives of many good people.

It's the responsibility of government, small and big businesses to work together to restore the American economy. Schools, vocational training centers and banks willing to make loans can also play a positive role. Everything and everyone should take responsibility in some manner, including bloggers and the media.

A true recovery can't happen until unemployment is reduced. We need to throw out the old playbook and figure out a way to get people back to work. That can't be done by businesses pointing the finger at government and government pointing back. It can't be done with the level of partisan politics we're experiencing or the continuing decline in education.


America needs some out-of-the-box thinking that doesn't rely on stereotypes about the role of businesses in a capitalistic society. We would be speaking German if that sort of thinking existed in the past. To say that employers are too afraid to hire because of the uncertainty about the economy is probably true but it's also a trap. It's a vortex that no one can escape. A circular argument that pushes us closer and closer to the edge. Businesses were not exempt in contributing to past war efforts. Why are they now washing their hands of any responsibility during one of the most profound emergencies we have ever faced?

Risk is involved in the operation of any business during up and down times. Those without the stomach for risk probably shouldn't start a company. The excuse that hiring is too risky now is just that -- an excuse. While it might be a justifiable excuse, it is nonetheless an unproductive claim. Profitable companies can't lean on that crutch until the good times return. There will be no good times without companies showing some confidence in America. Government can help lessen those risks, but can't eliminate them. It's going to take brave corporate leaders to chart a new course -- a course that navigates us to safer waters. The profits will return and the stockholders will get paid, but for now, we need a fresh, less selfish approach to doing business.

The fact remains that the private sector provides most jobs in most democracies. With that privilege comes the occasional responsibility to chip in, to do right by society, to give back. Companies hold fund-raising drives for the United Way and other charities, now they need to do a little more for the benefit of the entire country.


We have a domestic war going on. The further collapse of the economy will mean the eventual collapse of a nation. History has proven time and time again that countries without viable economies will implode. Ask anyone on the front lines of this war about the seriousness of our economic woes. They will describe scenarios that might seem unimaginable to most people at this stage of the war.

While I empathize with anyone trying to keep their business afloat with all of the current obstacles in their way, I must say that the time has come for the bigger, more profitable employers to show some faith and start becoming part of the solution rather than part of the problem. Others will follow. I believe in momentum. Businesses that become leaders in this cause will motivate others and stimulate the economy in ways the government can't.

Being frozen with fear while sitting on profits is no longer an option. This is an emergency. A war. All hands are needed on deck. A sense of patriotism that trumps greed needs to emerge, just as it did in past wars. We have to get away from this stuffing-cash-in-the-mattress mentality. Continuing to debate roles and responsibilities just prolongs the conflict and jeopardizes the very thing that most companies and individual citizens treasure -- freedom.

Read what others say about why corporations got rid of so many workers during the recession (far too many in the estimation of some) and why companies are refusing to hire despite bulging profits: "A Sin and a Shame"

Where will we hide the homeless?

There is a proposal in Hawaii to ship the state's growing homeless population to the mainland.

As the economy continues suffer and jobs remain scarce, homeless people are showing up in places usually reserved for tourists. Some state officials believe it would be more prudent to spend $300 on a one-way plane ticket for each homeless person than to pay $35,000 a year to shelter and feed them. Furthermore, the state has concerns that the sight of homeless people roaming plush beaches will hurt tourism, which overwhelmingly supports Hawaii's economy.

Welcome to the future of America, where homeless people are no longer confined to inner-city soup kitchens and out-of-sight trash dumpsters. The homeless will be everywhere and will include educated people who were living in 3-bedroom suburban homes for most of their lives. The new homeless will look different. They'll be your grandparents and former colleagues. They will be well spoken and mentally coherent. Many will be young adults who couldn't navigate their way into a failing job market despite possessing multiple college degrees. They won't be content to freeze in a back alley in a decaying Detroit neighborhood. They will migrate to places where they can survive in the elements.

Where will we ship these people?

As distasteful as it might be for some folks to picture the new homeless camped out in the parking lot of Whole Foods in suburbia, it's going to happen because of our inability to extricate ourselves from the economic mess we're in. Some people won't even acknowledge how severe the unemployment problem has become. The Rush Limbaughs of the world think there are plenty of good jobs for anyone willing to work.

While those who are still sailing along, bathing in a kind of blissful ignorance, tend to not think about these things, I am here to tell you that current and former middle class people can't continue to drain their savings forever without ending up on the streets. They need jobs. They need to restore their nest eggs.

Tourist areas, tidy suburbs and other places that are usually shielded from society's ills will be inundated by a new wave of homelessness in the next decade if the employment situation doesn't improve dramatically in the next year or two.

Read more about Hawaii's proposal.

Thursday, July 29, 2010

Fences rarely provide solutions

Before there was an Arizona law on illegal immigration, there was a Manassas and Prince William County, Va., law that I have written about in a earlier post. In my opinion, and the opinion of a federal judge in Phoenix yesterday, there are aspects to these local laws that are unconstitutional. I might add, on a humanitarian level, there are also unfair elements to these types of laws born out of desperation to solve an undeniable problem that impacts many communities across the country.

However, I've been in Manassas several times in recent weeks and there is no denying that an illegal-alien problem still exists there, maybe more so than most areas around the state. Some estimates claim that illegal immigration costs Virginia more than $1 billion a year. I imagine the state of Arizona is facing an even bigger bill. Small towns in particular, like Manassas, simply can't afford these kinds of expenses.

Something does have to be done to guard our borders. That's just commonsense. We are living in the worst economic times of our lives. Just from an economic standpoint, moderating the flow of people into this country, regardless of where they come from, seems fairly prudent. We must fight this recession on several fronts and reduce expenses where we can. War and illegal immigration are just two areas where we could save billions.

It is important to look at immigration (legal and illegal) as a economic issue and not a race or emotional debate. In better times, there were some economic benefits to having some illegal immigrants here, working for minimum wage and spending money in various communities. Those times have probably passed with the loss of jobs. Many of those immigrants are still here and are unemployed and not circulating money back into the economy.

The federal government is charged with protecting our borders, issuing work visas and should not be undermined by the states or municipalities. But the feds should also understand that we can't continue to give jobs away to whomever wants to come over here, whether they come legally or illegally, whether they work for minimum wage or hold white-collar jobs. There aren't enough jobs for everyone. We have to shut off the faucet and allow jobs to catch up with the population.

Leaders in Washington should act soon so that states that are already running huge deficits don't have to add to the red ink by providing services to folks who aren't here legally. Police need a clear set of rules to work under in addressing illegal aliens -- rules that don't endanger them or inflame the situation. Employers must also play by the rules when hiring workers. And we all need to bite the bullet and accept that our veggies and fruit might cost a bit more if we really want to solve the problem of illegal workers.

No fence along the Southwest border is going to solve all our problems. Immigration regulations in general need a major overhaul. We need laws that allow people in under a fair system while protecting the economic and security interests of America. Times change and smart legislation needs to reflect that. To do nothing is to ask for more trouble, more court battles, more bad laws and more expenses we can no longer absorb.

Wednesday, July 28, 2010

All eyes in D.C. turn to the Redskins

The Washington Redskins will open training camp tomorrow in Ashburn, Va., just a few miles down the road from where I live.

Albert Haynesworth, the only Redskin player to not attend any of new head coach Mike Shanahan's "voluntary" practices and workouts, will be the focal point of the first few days. The all-pro defensive lineman is apparently in shape but still needs to pass a conditioning test before stepping on the field. Haynesworth was often injured and fatigued in his debut season with the 'Skins last year and has asked to be traded in the off-season. However, it appears the disgruntled 100-million-dollar man isn't going anywhere, at least for the time being.

Donovan McNabb, the old Eagle quarterback turned Redskin in the off season, will also get a fair amount of attention in camp. Some of his Philadelphia coaches said the QB still has a couple very good years left. If that is the case, I wonder why the Eagles traded McNabb to a division rival?

Running back Clinton Portis is looking for a bounce-back year and has plenty of competition motivating him. Shanahan has brought in a host of veteran backs. Portis has taken a beating behind a poor offensive line for the past couple of seasons. It seems unlikely that he will run with the same vigor that he showed while he played for Shanahan in Denver eight years ago.

Washington is a football town. You can't get away from it even if you wanted. It's actually kind of nice, especially when you consider that some NFL markets are having trouble filling their stadiums. Regardless of how bad the team has been in recent years, Washington always supports the Redskins. Football always brings a welcomed distraction from the world's problems.

Greed is to blame for lack of jobs

This Washington Post columnist, Harold Meyerson, explains how businesses are "defying gravity" while refusing to expand payrolls. More economists and commentators are beginning to see what is causing the economic bottleneck. Once again, it's our old nemesis, greed.

Everything is in place for the economy to grow. Bailout and stimulus packages have been provided by the government. Financial reform will create a more level playing field for businesses. Profits are up. The pool of talented people looking for work has never been more robust. Yet, employers still won't hire because they've learned to make a buck with fewer employees and have shipped many jobs overseas.

What these employers fail to understand is that by shutting the door on American job-seekers they are sealing their own fate. With no money circulating through the U.S. economy, consumers will buy less and eventually profits will go down. These businesses are also burning out their current employees and degrading the quality of whatever it is they are trying to sell. Additionally, many corporations are boosting the economies of places like China, which provides cheap, abundant labor, not to mention inferior products. Oh, and let's not forget that China isn't exactly our friend.

It seems more evident by the day where the blame lies for the lack of true economic recovery and the destruction of the American workforce. It's going to take a unified effort by the government and private sector to save this country. There is no more time to waste on politics and greed. Read more.

Tuesday, July 27, 2010

Billions more wasted on Afghanistan

"I am confident General Petraeus and the troops will succeed in Afghanistan, if given the time, space and resources they need," said Rep. Howard P. "Buck" McKeon (Calif.), as a $37 billion bill to fund the Afghan war passed on Tuesday.

Exactly how much time, Mr McKeon, is needed? This is already the longest war that America has ever fought. Can you even define realistic success, Mr. McKeon? And what resources are you talking about? We are fighting guys in robes with state-of-the-art weapons and still can't break the back of the Taliban. What resources aren't we providing, Mr. McKeon?

It seems to me that certain politicians either like being at war or don't want to admit that their party's president started a conflict that can't be won. Yes, McKeon is a Republican. This is the same party that claims to stand for fiscal conservatism and reducing the deficit -- a party that seems to think, as a friend of mine says, that "blowing up rocks" in a third-world country is good use of money we don't have.

No foreign military, dating back centuries, has ever succeeded in Afghanistan. What makes American politicians think we can endlessly fund a losing cause during one of the worst economic junctures in our history? What does our Democratic president, who inexplicably backs the funding for the war, know that we don't? How can we continue losing lives in a primitive country that has through the ages refused to help itself? The Taliban thrive because there is a lack internal resistance. Is that our problem?

If we left Afghanistan tomorrow, would the Taliban attack America? It seems unclear what the threat is that requires such a massive occupying army that never leaves and rarely makes much progress. Yes, we know the Taliban are bad guys. If they harbor terrorists who plot against America, we can deal with that in a more targeted, less expensive manner. But to have a massive military presence in a backwards, corrupt nation that has nothing but hatred for us is simply incomprehensible to anyone paying attention.

The fact that this bill passed is more evidence that Americans are asleep.

Hey, where's my Obama postcard?

I wrote to President Obama a couple weeks ago to thank him and the Democrats for pursuing an extension on unemployment benefits. In the note, which was sent through the White House website, I briefly described my struggles finding work in journalism, a field I was employed in for 29 years.

You never know what you're going to get when you write a politician. When I wrote to President Reagan in the early 1980s, I received a handsome presidential postcard in the mail thanking me for my note. I recently wrote Rep. Frank Wolf (R) of Virginia and got what appeared to be two hand-written letters, one replying to my note and the other in response to a blog post. I have written to other politicians, including Virginia Gov. Bob McDonnell, and received no replies.

I must say, getting the following reply from President Obama (obviously his support staff or some automated e-mail system generated it) was disappointing and sadly ironic. I took the time to write an e-mail, describing some of the financial hardships in my life as a result of the recession, and I got hit up for a donation in return? I didn't expect a personal note from the president, but I wasn't prepared to get on an electronic solicitation list either. The whole point of my note was that unemployment benefits were needed because every dollar counts for people hanging on by a thread. Asking me for money for the Organizing for America campaign is almost funny. Almost. Needless to say, I won't be donating. While the Democratic cause might be worthy, this whole episode has soured me even further on the lack of sincerity and state of affairs within our political system.

(As a side note, I also received an e-mail allegedly from Michelle Obama as I was writing this post. It asked if I would sign her husband's 49th birthday card and it provided a link to the card site. No doubt another ploy to get on another donor list. God, the Internet is such an insincere, intrusive and manipulative tool at times.)

Here is the e-mail, pretending to be personalized just for me, but with no acknowledgment of anything I wrote in my note:


Mick --

When you and I set out on this journey three years ago, we knew that ours would be a lengthy struggle to build a new foundation for this country -- one that would require squaring off against the special interests who had spent decades stacking the deck in their favor.

Today, it is clear that you have shifted the odds.

This morning, I signed into law a bill that represents the most sweeping reforms of Wall Street since the Great Depression, and the toughest consumer financial protections this nation has ever seen. I know that I am able to do so only because the tens of thousands of volunteers who make up the backbone of this movement overcame the most potent attack ads and the most powerful lobbying the special interests could put forward.

Our special-interest opponents and their Republican allies have now set their sights on the elections in November as their best chance to overturn the historic progress we've made together.

Organizing for America counts entirely on supporters like you to fight back -- no special interests, no corporate PACs. To keep making change and to defend the change we have already won, we need you -- and at least 14 other people in your area -- to contribute so we have the resources necessary going into the election.

Please donate $5 today and help Organizing for America lay the groundwork for the fights ahead.

Because of Wall Street reform, we will ensure that Americans applying for a credit card, a mortgage, or a student loan will never again be asked to sign their name under pages of confusing fine print. We will crack down on abusive lending practices and make sure that lenders don't cheat the system -- and create a new watchdog to enforce these consumer protections.

And we will put an end to taxpayer-funded bailouts, giving us the ability to wind down any large financial institution if it should ever fail.

The passage of Wall Street reform is at the forefront of the change we seek, and it will provide a foundation for a stronger and safer economy.

It is a foundation built upon the progress of the Recovery Act, which has turned 22 months of job losses into six consecutive months of private-sector job growth. And it is a foundation reinforced by the historic health reform we passed this spring, which is already giving new benefits to more than 100 million Americans, ushering another 1 million Americans into coverage by next year.

But today's victory is not where our fight ends.

Organizing for America and I will move forward in the months ahead on the tough fights we have yet to finish -- even if cynics say we should wait until after the fall elections. This movement has never catered to the conventional wisdom of Washington. And we have fought to ensure that our progress is never held hostage by our politics.

You and I did not build this movement to win one election. We did not come together to pass one single piece of legislation. We are fighting for nothing less than a new foundation for our country -- and that work is not complete. As we face the challenges ahead, I am relying on you to stand with me.

Please donate $5 or more today:

https://donate.barackobama.com/WallStreetReformed

Thank you for helping us get here,

President Barack Obama

It's already too late for millions of Americans who have lost their jobs

In a recent column, Bob Herbert, a New York Times writer, portrays what I and others have been saying for many months. Average Americans are facing economic devastation that policymakers have yet to fully grasp. Millions of people who were firmly entrenched in the middle class now find their savings gone and futures looking more dismal by the day. Even if they return to work, it's unlikely many will be able to recover to the point where they can avoid living on the streets in old age. The damage has already been done and returning to work is becoming a near impossibility as employers continue to sit on profits.

This is a national emergency on a scale that we've never seen because there is no light at the end of this tunnel, no confidence that government and business will unite to pull us out of this. Quite the contrary. Sadly, we are approaching these problems like we have in the past, not realizing the uniquely catastrophic circumstances of this particular recession that has targeted the middle class while those on the top have quickly recovered via bailouts and other perks or privilege. America will soon be the ultimate have and have-not country.

With the exception of commentators like Herbert, the news media doesn't seem to understand the depth of the emergency. Elected officials are using the collapse of the middle class to score political points instead of finding solutions. With each savings account that is drained goes the hopes of many Americans. Hundreds of thousands are already struggling to simply clothed and feed themselves. These are people who three years ago had homes, nest eggs and college accounts for their kids. They are victims of what was probably an overzealous reaction by many employers to cut payroll to the bone. Meanwhile, the media barely scratches the surface of the most profound story since World War II.

Some who were in the middle class are losing the will to go on. This class of people did everything right, or so they thought. They educated themselves. Worked hard. And now they can't pay the electric bill. That changes people, particularly people who once prided themselves on being self-reliant. It changes the fabric of a society. We can fund wars but we can't pay to create jobs? We can export entire professions and grant millions of work visas, but can't provide employment for our middle class? It's tragic.

This recession is a silent killer. But it's only silent because people in power have their hands over their ears. In fact, the term "recession" doesn't quite explain the depth or complexities of what is really happening at the core of our society, in the smallest towns and biggest cities.

It appears survival of the fittest is the new American norm. Those who have jobs are choosing to not think about those without paychecks. Those in a position to hire aren't doing so in order to fortify their security. People in government make job-creation policies that have no teeth so that they can survive another election season without making too many waves. The millions of people impacted the most by the economic collapse will perish soon enough, long before their time, leaving the country to those who protected their riches and turned their backs on former colleagues, neighbors and friends who weren't quite as fortunate.

Read the Herbert column.

Monday, July 26, 2010

Hayward: A story more fit for page 3

No wonder newspaper circulation is hurting and television news ratings are declining. For the second week in a row, the media has latched onto a story that in the grand scheme of things is fairly meaningless to most Americans, particularly citizens who are struggling financially, have sons and daughters fighting in hopeless wars or simply had plans to vacation along the Gulf of Mexico this summer.

Media outlets are playing up the possibility of Tony Hayward, British Petroleum's CEO, stepping down. Last week we were up to our ears in the Shirley Sherrod nonsense (see previous post). I think a potential Hayward resignation is news, just not above-the-fold, page-one news on consecutive days. News companies have lost a lot of resources in the recession, so pouring time into stories like this is an even bigger waste of newsprint and airtime. The story impacts virtually no one other than the Hayward family. It's not like there is a shortage of other more significant news and topics that deserve reporting and objective analysis. Where has investigative journalism gone? The kind that altered lives and even the planet as a whole? Why are we so immersed in the tale of one filthy-rich guy whose job will be filled by another soulless suit with better public relations skills?

No one cares about Tony Hayward. No one I know, anyway. When super-wealthy guys get fired or are forced to resign, the public sympathy/interest rating reads about a minus five on a 1-to-10 scale. Look, we're happy to not see Hayward very often anymore. We are generally pleased not to see any CEOs on television or on the front pages of newspapers. Playing musical chairs at the top of these corporations is mostly a game of appearances with no ramifications for the public. It's insider stuff that really makes little difference in how the world spins.

I am tired of perceptions, celebrities and politics guiding everything from media coverage to government policies. It's all rather distracting at a time when we need laser-like focus. We should start uniting and educating in order to fix some very real and serious problems. The media can play a role in this if it can find a way to make the news relevant to people's lives.

Unlike the millions laid off in this recession, Hayward is going to be fine -- probably better than ever because that's the way the game is played at the top. BP is going to continue being BP. CEOs will come and go, and when they go, it's always with a golden parachute. The real task at hand for BP is not in replacing Hayward, it's in cleaning up the damn Gulf. The work of the government is to find out what went wrong in this catastrophe. Replacing Hayward is mere window dressing that the media should not get too distracted by while covering the bigger story.