Ignoring Underemployment in America

Occasionally, it appears the United States is not committed to a full economic recovery.  Perhaps there are elements within our nation’s makeup that preclude its occasion.  There are a number of systemic barriers which prevent the US from taking advantage of its entire workforce.  The current unemployment figures, for instance, indicate that we’re doing better on this front.  Employment figures are derived from government sources, typically.  Also, unemployment figures do not reflect those out of work that have simply stopped looking for a job.  America is becoming a world leader in dropouts.

Furthermore, these are somewhat lagging indicators.  This is kind of a chicken versus egg issue to me.  An argument could be made either way, but intuitively, an employer needs to generate business before taking on additional labor.

The opposite can play out, to be sure.  A firm could elect to drive revenues from newly employed sources.  This takes capital investment.  So again, we’re in a circle here.  I’m a very big fan of “The Economist.”  It’s quite British, but there seems to be a greater ability to agree to disagree over issues of relevance across the pond.  It’s the best periodical available for reasoned and practical analysis of world issues.  As the world becomes increasingly interconnected (and at more rapid speeds), this magazine is essential to me in harnessing a greater understanding of the world around us.

I’ve said for a long time that consumer confidence was the only real microeconomic indicator that meant much of anything to me.  I still believe it is the number one collective factor driving consumer purchasing decisions.  Lack of confidence virtually always brings with it quite dire consequences to practical business and social activities.  When a society operates out of fear, there are limiting effects on the progression of society as a whole.

This forum is not meant at all to be a social rant, and I don’t have the answers to much of anything, but there is a fantastic read in the latest Economist in part about America’s relentlessness in incarcerating young black men.  It’s pretty hard for a society to operate in a highly efficient manner when the society spends an immense amount of resources cordoning off a large segment of the general population.

Immigration haters are entirely missing the point on this one.  We have done very little as a country over the past 30 years to address the educational quality and underemployment of our current citizens, and the socio-economic reasons that fuel this vortex.  We simply sweep the problem under the rug.  Government can regain trust and consumer confidence by operating at a very low level of functionality these days.  If a governmental agency can simply demonstrate the ability to do something right, they will get something of a nod of reward from its people.

When the bar has been lowered to the point where communities take a great measure of pride in the size and quality of its jail, perhaps the focus is a little skewed.