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Get Used To IT? God Forbid.

There’s probably no question in anyone’s mind what it means to have a jobless recovery. At least the jobless part is readily understandable. The current administration’s policies have pretty much lead to a jobless recovery; but why? Wall Street seems to be doing relatively well. So is it, as economists keep saying, that individual companies have tons of cash that they are just sitting on, largely due to the fact that they are afraid of what the new Federal Regulatory Agency and Health Care will mean for them? Is that why they aren’t hiring, or are there other reasons? The Job Report, or rather what has become known as the Obama Jobless Report released last week presented new unexpected disappointing numbers.
The current admin will argue, ‘well, that’s because more Census workers finished their stint and were laid-off’. (Apparently we needed to have MORE census taking). But the real truth is, that that number wouldn’t have been at all noticeable if jobs had been created anywhere else in our country. So why aren’t they created? The fact that businesses are hampered by the uncertainty that the Obama administration has created is true. The uncertainty is there because of the health insurance cost expectations and the huge new Federal Regulatory Bureau(s) (the CFPB being the most unconstrained), with their scary ability to, in essence write their own laws. Okay, they will technically be rules not laws, but the effective difference may not be noticeable. The fact that the new regulatory agency is a static entity that can’t really get voted in or voted out is even more troubling, because it may continue, like most Federal Organizations on into perpetuity, only finally dying when it has destroyed the host it inhabits from within. Each little minion, regulator, and rule-writer will be like all of those winged beasts that the wicked witch of the West had working for her. Only, even worse, now they’re working for the administration, Congress; (the witch melted, remember). They’ll be out there gathering the life blood of American Businesses and bringing back little vials for the likes of Nancy Legosi, Barracula, and, yes, Barnabas Frank. The new Federal Regulatory commission, at first, appears to only affect Banking, and perhaps banking should be more watched. The problem is, that no existing government agency that has been tasked with the job, has done it well, or even done it at all. The obvious answer, that no one wants to admit, is that the Federal employees are probably sitting around eating donuts and coffee, or in this case, donuts and blood, and getting paid 1 ½ times as much as private sector employees in comparable jobs.
But that’s only part of the problem. There’s another angle to this joblessness: Mid to large-sized American Companies have all discovered the emerging markets, China, Brazil, the entire South Pacific and Southeast Asian area of nations. What that means is that they are selling product there, and that should be good for American companies, except for one thing. In order to sell to these foreign markets they have to, somewhat play by their rules. They have to at least cater to them. That makes sense, but that often means that they have to build factories there. For all of President Obama’s campaign blather about stopping American companies from building factories abroad, the alternative would have been to not cater to the emerging markets, not capture any market share, and we’d now have a jobless non-recovery, instead of a jobless recovery.
Let’s take some American companies as examples: Caterpillar International. The have offices and factories all over the world. They’re an American Company. They sell huge machinery to these new growing markets. It would be impractical for them to try to do all of their business from United States-based offices. It would be totally unrealistic for them not to have warehouses and assembly plants abroad. The fact is, many, many of the companies that are doing well right now on Wall Street, are companies that have tapped into their share of the foreign markets. Yum Brands is a good example. According to an October 5thWall Street journal article by Kelly Evans, the new Outlets opened by Yum in China are expected to experience a 5% increase in sales this quarter compared to a much smaller 1% to 2% expected growth in the United States.
YUM owns familiar American companies, like Taco Bell, Pizza Hut and KFC. Yum has factories abroad. Think about it. If you walk into a KFC and they have been steadily cooking chicken that they Are preparing for whoever might be flocking in, and they are using people and machinery to do it, that’s a factory. Maybe we should follow Obama’s philosophy. Maybe they shouldn’t be allowed to build those ‘factories’ abroad. Maybe we should be cooking the chicken here, shipping it over on a transport plane , and they can quickly microwave it. Or we can send the little flying monkeys out with boxes of chicken under their arms.
It’s time to wake up to the new reality. We can domestically prosper from the new markets. We can create and supply goods, or at least the parts to goods to these foreign markets, but that is never going to get afoot as long as we have an administration that doesn’t require any accountability from the Unions, doesn’t hold their feet to the fire to begin to develop some long-term vision, to work productively with management, and to also modify policies that have made us sluggish. The administration needs to stop injecting incredible uncertainty via it’s creation of monstrous agencies with monstrous new appetites (appetites we have just begun to appreciate), and the monstrous debt that will go with it.
It certainly needs not to go ahead with the soon-to-come planned tax hikes, resultant to the January expiration of the Bush tax cuts. And, how about this, ‘It needs to start to respect life’, life in the seas, life in the womb, life of Americans and aliens endangered by the complete lack of any External Work Force/Border policy. Maybe there will actually be a blessing from God if our administration shows a genuine ‘Respect-For-Life’ and not a lip service one. It needs to stop the blood-letting, and the blood-sucking.

copyright October 10th by Juan Zapatero



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