Labor Day

The long weekend is here and I’m psyched. It’s Labor Day weekend, the final hurrah before Wall Street goes “back to work”. But for millions Americans, Labor Day is not being celebrated at all. They’re either still unemployed or they are the “under employed” working two or three jobs to make ends meet.

The August jobs numbers were again a “mixed bag”. The unemployment rate rose to 9.6 percent, but even with private employers adding 67,000 jobs that’s not enough. We need to be growing jobs at 125,000 in order to bring down joblessness. If not, we might find ourselves sinking back into another downturn.

One of my twitter followers commented to me the “mixed bag” phrase is becoming very familiar. I agree. I guess we’re using “mixed bag” instead of sluggish status quo?
The O-ministration sent out a release that the President wanted to talk about the economy after the jobs number in the 10am hour and talk was going around if we would hear a policy announcement. Logically, it was too soon to hear any “solutions” instead we heard the same chant before on the need for Congress to pass a Small Business Bill (which Congress should do) and that the recovery is taking a longer time to get back on its feet which we all know. So now we will wait until next week to hear what magic bullets are left in Washington’s arsenal to help kick start this economy.

I equate this economic recovery to one of my kids picking a scab. Yes, its gross but I think its true. Instead of letting the wound heal on its own and letting the scab fall off naturally at its own time, they pick it off too early and it bleeds again. Instead of the economy hemorrhaging like it did after the financial crisis, it is scabbed over and trickling blood because we have yet to let the free markets work itself out. Policies from government can be created to facilitate healing, not preventing or prolonging it. That’s what we are seeing now.

One of the ideas on the table being discussed that could help the jobs situation is the payroll tax holiday. That could be an incentive for businesses to hire. What I find ironic with this “ray of hope” is Wilbur Ross has been talking about this for years (literally).

I guess with the politicizing of the jobs situation we’ll get to hear from both sides who is the bigger devil. It’ll make for good soundbites on t.v. and radio but it doesn’t line the pockets of Americans struggling to pay their bills and support themselves or their families.

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Author: loriannlarocco

I am the author of "Dynasties of the Sea: The Untold Stories of teh Postwar Shipping Pioneers", "Opportunity Knocking: Lessons from Business Leaders", "Thriving in the New Economy" and "Dynasties of the Sea: The Shipowners and Financiers Who Expanded the Era of Free Trade". I'm also the Senior Talent Producer at CNBC, and known as the producer with the trillion dollar Rolodex

One thought on “Labor Day”

  1. Hope you are having a terrific Labor Day! I’m laboring a little bit today.

    I think the scab analogy is apt. I had never thought of it like that but it makes perfect sense.

    I would be in favor of the payroll tax holiday that Wilbur Ross is a proponent of. Anything that creates more private sector hiring is something that I favor. It all begins and ends with jobs. Jobs/income create consumer confidence that will create the needed economic growth.

    You also know how I feel about how the corporate tax in the US needs to be reduced to keep the US competitive with other OECD nations.


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