frankly speaking

Our Unemployment Crisis

The unfortunate reality about this economic recovery that we’re experiencing is that it’s going to take us a lot longer to climb out of the hole we fell into. It’s going on two years since unemployment in this country has crossed the government’s ‘official’ tally of 9%, however, the U6 or the ‘real’ unemployment rate remains much higher.

Most people are quick to blame the president, his administration or (ridiculously) even bankers for the pickle we are in. But is that the real problem? Or are people just lazily playing politics on a deeper, more systemic problem?

No doubt that the president has responsibility in this, in fact, as much as I hate to admit it, his electability next year hinges on his ability to get unemployment below 8% (at best) but at least below 8.5%, which may be the line of demarcation for his second term. However, to say that the president or his administration doesn’t care about employment is naive, and a tad disingenuous.

Similarly, to imply that Ben Bernanke, Tim Geithner and Hank Paulson before them acted irresponsibly in the Fall of 2008 is sheer absurdity. For them to not have acted with such decisiveness against the financial crisis that was facing this country surely would have led to a depression much worse than what we are experiencing now.

So what can be done to fix our problem? Unfortunately, I don’t see this as an easy nor quick fix. The fact of the matter is that for too long our country has ignored the warning signs that have gotten us into this mess. The interesting thing is I know plenty of companies (my own included) here in San Francisco and elsewhere that are facing a daunting challenge trying to hire qualified individuals. For the last two months I’ve been trying to hire for multiple marketing positions and the resumes I’ve received are either not qualified or so very qualified that they are receiving multiple job offers.

I feel fortunate to be where I am and am not by any means complaining, but rather trying to point out that fixing unemployment and the economy in general is more complicated then a game of tax breaks. Even if taxes were extended lower, it’s doubtful that it would lead to any significant hiring here in the United States. The smart money is being placed where the talent is - and that’s the reality of the situation.