The US GDP was revised sharply down today from 2.4 per cent to 1.6 per cent and to be honest I was not surprised. The US economy right now for many Americans is on life support and many fear the policies in Washington are going to pull the plug on the economy rather than jolt it back to a strong heart beat.
Even though I have been off for two weeks spending time with my three kids (“camp mommy” as I affectionately called it), I have continued to talk to my contacts and have had a chance to talk with some close friends who are still out of work and on the flip side trying to hire. Its bad out there and I know you know that. You have to be living in a cave with no human contact to not know someone who is out of work. I have several friends who are professionals that have been out of work for almost a year and their odds of finding a job are still bleak.
This is a great story that illustrates the employment situation in our country. I was at my best friend’s house last week and was talking to her husband who is the HR manager for a Long Island non for profit. He told me on the Monday of that week he put an ad in the paper and online for a comptroller opening and by the next day he had 200 resumes. The candidates he is closely considering for interviews all had controller experience and they were out of work for at least two years. He said the majorityof the candidates that sent in resumes were all out of work for almost two years, some longer.
Youth unemployment is the lowest since 1948 because adults are taking those jobs because they need to feed their families. But what we are greatly lacking here in this prescription to re-energize the economy is the government incentivizing businesses to hire.
Wayne Huizenga has told me as well as countless other CEOs, business and government should work together. The private sector is not the enemy. It is the lifeblood of this economy. I know there is a hatred towards big business but that hatred should be cast aside becaues it is impacting the small businessperson. How many more people have to lose their jobs before people wake up and realize *both* big and small business are the employers in this great country of ours?
I read an article this morning that Mullen, chairman of the Joint Chiefs of Staff said the ever increasing US Debt is the single biggest threat to national security. This was no big revelation to me. One of my great contacts, Jim Rickards of Omnis was on Squawk Box about a year ago warning about this. Why is it making headlines now??
The all important jobs number is out on Friday,September 3rd, and this number will be an important one for lawmakers with the mid-term elections just around the corner. We all know government policy is reactionary rather than looking forward. Let’s hope the political mudslinging can be set aside and some actionable, real life stimulus can be achieved. If you don’t like how a doctor is treating your illness what do you do? You fire them and find a better one.
Come November, we Americans will have the economic health of our beloved nation in our hands. What you decide will either help put America back on the mend or send her into the hospital. The vote and economic prognosis is yours.