Sunday, December 7, 2008

FIGURES DON'T LIE BUT LIARS FIGURE: So said Mark Twain

Perhaps no other group of individuals have ever faced the harsh reality of the way things really are than the old time River Pilots on the Mississippi River. Mark Twain knew the difference between what was said and what actually was.

I don't know if the American public has ever been so misguided in what is true and what is not true. Good people, some of my dearest friends, are completely brain washed with what they have seen on tv or read in the papers. They are misled by dishonest public figures whose misdeeds are covered up by an even more dishonest media.

A perfect example is the current rate of unemployment. It has just increased from 6.5% to 6.7%. Considering that this is about the average unemployment of the last 50 years I think it would have been far more accurate to say that "unemployment EDGED up a bit". Their bold headlines read'UNEMPLOYMENT RATE EXPLODES'. Their headlines could have honestly reported that the long term unemployment rates are still trending downward--see the 50 year unemployment chart. Such honest reporting would not justify their political bashing of the "so called" failed "Bush Economy".

The biggest problem is not that jobs are being eliminated, shipped overseas, or filled by temporary, read illegal, workers. Although jobs growth continues, far fewer jobs are being created by new or expanding companies now than there was throughout the 1990s. Not enough to compensate for the rate of modernization.

The Bureau of Labor Statistics officially explain in it's quarterly report what's happening with job creation and job destruction and with the underlyng forces that create the net changes. HAVE YOU EVER SEEN HEADLINES ON THIS REPORT? Contrary to popular belief, the most recent numbers show that job cuts in the private sector have fallen to a near-15-year-low! It is still about 6.2%, thats about the national average. Why is this important? Well, because it is the lowest it has been since 1992 when the BLS startd keeping this record. HAVE YOU EVER SEEN HEADLINES ON THIS REPORT?

Yes, healthy job creation--25% higher in 1990 than in 2007--can more than make up for the cuts. This can be corrected with laws that encourage such growth. Ours are some of the most anti-business laws in the world. Our laws actually discourage growth and penalize success.

Cutting obsolete jobs is not bad! When the work force is made more efficient, economies boom and living standards for the workers improve. This is true progress. How many people today "earn their daily bread by the sweat of their brow" making buggy whips or horse shoes? Or, shall I mention, old fashioned bias tires that lasted for 12,000 miles if you were lucky? There is no way that I would want to give up my 60,000 mile radial tires to get back my Manager of Tire Production position.

As obsolete buggy whips and bias tire jobs have correctly been eliminated, so must the labor practices of annually paying an average of $62,000 to auto workers who are not working, and may not have worked for years. I am not talking about retired workers, either. Whatever the reason, the auto makers made these stupid, unsustainable contracts and now whine for help while the foreign car makers in this country are doing great.

There is a way to correct that situation. It is called Chapter 11, or reorganization. It is long overdue. THE ANSWER CANNOT BE TO MAKE THE AMERICAN PUBLIC PAY TO FURTHER SUSTAIN SUCH STUPIDITY! This blog was written to answer my therapist, Vince's, question of whether I was in favor of the auto bail out. Does this answer your question Vince? Bye-the-bye, it was nice meeting your wife--how did such a homely guy get such a good looking gal? Wonder of wonders! Vince is a miracle worker!

An Old Irish Blessing:

May your heart be light, your cares be few, and may your wishes all come true!

God Bless and Remember Pearl Harbor!

1 comment:

John Murphy said...

Hi Walt! I'm against the Auto bailout myself but was under the impression that the bailout was going to be in loans that have to repaid in time, with the longer they wait to repay, the higher the interest rate will be. the Automakers got themselves into this mess by negotiating bad contracts with the labor unions. the average "John and Donna" can't even begin to afford a new car with a 25K plus price sticker! The changeover from an industrialized economy to service industry (for the most part low paying no benefit)jobs is killing the Northeast Ohio ecomony. Until employers are forced to pay a living wage with healthcare to their employees( forced trickle down economics)and eleminate corporate greed our ecomony will suffer. john