Desperate Economy Requires Different Solutions

What is causing all this upheaval in the economy?current high profile issues could include weight
Most authorities think it is related to thecontrol, social behavior, and political correctness in
withdrawal of all credit due to wholesale grantingspeech or actions. Do you really believe anyone
of mortgages to people who could never beshould be able to tell an employee how to act in a
expected to repay them. All this has happenedlegal way off the job? Disgusting!
since about 1995 when the government decidedSeptember 11, 2001, has given extreme emphasis
to provide housing to everyone who wanted aon public illness fearing a terrorist act of some
home. When the defaults began, lenders stoppedkind that can make millions sick. This Homeland
lending, foreclosures were everywhere, no oneSecurity issue is certainly well-taken. But when
could buy a house anymore, and home pricesthese concerns are added to the availability of flu
began a steep drop which is continuing right now.vaccine many people have begun to place great
What will make the economy begin to revive?emphasis on workplace germ issues. All the news
Nobody has any idea how to reverse the coursemedia have addressed public concerns about
of our economy. We are all going to have to livecommunicating disease among those around you.
through this somehow. But what can we do?On NBCs Today Show, February 16, 2005, Al
There's no money!Roker said employees coming to work sick has
The news continues to be frightening. Just todaybeen estimated to cost employers $159 billion a
the Labor Department announced the loss ofyear! I totally agree people should stay home if
over 500,000 jobs in November alone. Since thethey are sick. BUT what about hourly workers?
recession started last December (2007) moreThe NBC show says, for example, flu usually lasts
than two million positions have gone away. This isfive or six days but workers usually come back in
a catastrophe for many households because oneless than two days. No work no pay, they starve
income is not enough to support the lifestyle ofto death. So what if employers start firing
most families in the US today. Labor experts sayemployees who come in sick despite warnings?
more losses are likely in the next few monthsThese guys have to eat. So the employer gives
and their forecast is for slow hiring recovery evenpaid sick leave even to hourly people; an
when the economy begins to turn up. This articleemployee uses it more often than the employer
is about doing something to remain positive andthinks is necessary and is fired. Who can work in
upbeat through the current time of trouble.constant fear of getting a bad cold and being
On this blog we promote a positive attitude.forced into a pay cut or loss of a job?
Negative thinking obscures the best ways toAnother serious issue for workers is offshoring of
solve a problem. It's like a dark curtain spreadjobs to cheaper developing countries. This has the
over the world where you can't see any way toability to affect any job that can be entirely done
do anything. Here are some positive steps youby telephone, like customer service, or on a
can take to help get through the recession. If youcomputer like most programming and Information
try some of these ideas you may create a newTechnology (IT) jobs. Public Citizen reports there
and more rewarding career for yourself. Action isare no hard facts about the total number of US
a major cure for negativism, so do something. Ifjobs lost or to be lost, but they do give these
you fail at first, just keep on trying. If you don'tdata:
try you will never do anything.Gartner Group says 10 percent of technology
The following ideas require some form of workingjobs will be offshore by 2005.
for yourself, probably from your home in theGartner also says 25 percent of traditional IT jobs
beginning. But, you say, "A home based businesswill go by 2010.
will not work!" That's true, so everyone saysAT Kearney believes 500,000 (8%) jobs in
except successful entrepreneurs. What do yourbanking, brokerage, and insurance will be
parents, your friends, your church, your school,offshored by May, 2008.
and everyone else you know tell you aboutCan you afford not to hedge yourself against this
working in any way for yourself? Nobody can dohappening to your Job? I don't think so.
it! That's what they say. You have to work hard,Now here come the robots and
get into a well-paying profession, stay with it forcomputer-operated machines. A few years ago I
40 years and retire with a large pension. It is noobserved at first hand the effects of automation
longer possible to work anywhere for 40 years;on the textile industry in the US. Hosiery knitting
average time in one job is three to five years.machines used to be operated by one operator
Now, to have any kind of retirement, one mustfor eight or ten machines and a mechanic who
begin a systematic saving and investmentlooked after maybe 20 machines. Then came high
program very early in life and stick with it untilspeed electronic machines where several hundred
retirement.could be controlled by one person at a panel, and
What's wrong with that picture? When people firstone mechanic could often repair problems from a
begin to work retirement isn't anywhere in theremote computer console. Changing patterns,
thinking universe. Many owe tremendous amountsformerly an extremely labor-intensive process,
for college loans plus credit card debt; in an articlecould now be done in just a few minutes with a
on the website Lucy Lazarony says the averagesoftware program. The textile industry is nearly
college student owes $2,200 on credit cards andextinct in the US at this time.
graduate students owe even more, $5,800.The hosiery experience has formed an image in
Paying the minimum it would take over 12 yearsmy mind of very large buildings with thousands of
to pay off $1,000; go figure how long it will takemachines operated, at some point in the future,
to pay off larger balances. Add student loans andby maybe two or three people. So two or three
the average student owes a total of $20,402 sopeople will replace thousands of workers who will
says Credit Card Research Program, quite a lot ofhave no jobs as we know them. In this factory
money for a beginning employee to repay. Thecomputers connected to robots will receive
point is, new graduates aren't thinking of saving.orders and transmit them to the proper
They want things like cars, boats, clothes, to getequipment for production; robots will then ship the
married, or to buy a home. And they still haveproducts to wherever they are required, no
those student loans and an ever-increasing credithuman hands involved. Farfetched? Look at some
card debt to repay. There's no money to invest;of the unbelievable things already in the works.
not for many years, maybe not ever.Doctors are being assisted by surgical robots in
Now what happens with the few young beginnersmany medical environments, Japanese are
who have the self-control to begin a seriousdeveloping robots to care for elderly people, and
investment program? All investments carry risk;the Smithsonian Institution's National Museum of
that's why they pay you for making them. ManyAmerican History has used a robotic tour guide.
investment vehicles are available from real estate,Development has begun on a desktop robot
mutual funds, stock market, all kinds of hedgesystem capable of producing just about anything
funds, commodities, you name it. Most peoplewe use in our daily lives and others are developing
have decided on 401k plans or mutual funds asa robot system that can build entire buildings. The
being the safest way to go; but even these fairlylist is limited only by the imagination of technicians.
safe plans have been hit with scandals like EnronWhatever happens, jobs are being eliminated
and all the other accounting scams of the pastworldwide, possibly including yours. The doctors
few years. All these things have caused the valueand medical technicians are already at risk as are
of retirement funds to plunge and sometimes toaccountants and tax preparers; tax return and
disappear entirely. You just can't depend on anyaccounting software eliminates accounting jobs
one source for continuing wealth if you aren'tand medical robots will reduce demand for
working. Just look at what has happened to allcareers in medicine. Stock brokers, legal research,
investment plans since September of thisand programming jobs are all either going to
year-they have lost 50% or more of their value.developing countries or they will be replaced by
That's a hit that can't be recovered for manyweb services or software that does their work;
people, particularly those near retirement. Theyless demand for any of these people.
just won't be able to retire at all.What these developing issues mean is work as
"Well", you say, "if I become a doctor or lawyerwe know it is likely to cease, or at least drastically
I'll be self-employed and make a lot of money. Ichange. In a few years (we don't know how
don't have to worry about being an employee andmany or how few) there may be no office or
be told what to do by others. I can keep themanufacturing jobs for people to use for income.
money I make and I'll never have worries aboutWe have seen that even service and professional
money." One of the top financial institutions in theoccupations are endangered; there is already a
US instructs all its agents and salesmen to not callrobot vacuum cleaner available for home use. So
on doctors, lawyers, or other professional people.what are people to do? How will they pay for
Why? They all have nice homes, new cars, boats,their needs?
and they are active in community life. They shouldThere are some who say the US workforce will
be excellent prospects for investments. But theynot be able to meet demand for workers in a
aren't!few years; others say there are plenty of
These professionals owe a lot of money forworkers. The facts are the workforce probably
school and for those fine houses and cars andisn't declining, it is just growing at a very slow
boats. Dartmouth Medical School says 35% ofrate. Some say greater productivity will cover the
new doctors owe at least $150,000. They areshortfall of employees. If the worker replacement
expected to maintain a certain lifestyle and theyideas we've discussed actually take place most
will have children who need to go to college. Dojobs will be eliminated and there won't be a need
the math and you will see most doctors will befor ANY workers. If automation doesn't do this
approaching 60 when they begin to emerge fromand there is a greater demand for employees
their mountain of debt. This is why the salesmenmany say increased productivity will compensate
are advised not to call on professionals; they havefor any shortfall. Either way employees will lose. If
absolutely no money!there are no jobs workers will have no income. If
This also means for most of their lives doctorsproductivity is used to overcome a worker
and other professionals are not self-employed.shortage, employees will become overworked and
They work for the host of lenders who haveunderpaid; they will burn out and be useless. Not a
furnished money, they work for the communitygood scenario; there really is no upside.
that expects a certain lifestyle, they work for theReality is- none of these extremes is likely to
automobile and boat dealers who sold them theirhappen, at least not in the short run, but there
toys, and they work for the colleges educatingprobably will be increasing job loss pressure in the
their children. They are bound by their financialworkplace. The government will figure some way
restraints so they aren't self-employed at all. Theyto keep displaced workers from starving, perhaps
work for all these other people. This is whyby offering a subsistence payment of some kind.
people should be starting a home based businessWould you like to just exist for most of your life
as early in life as they can, which is right now.without contributing anything to society? Probably
Even though people still have the same old mentalnot.
obstacles to self-employment, there are newHere's how to prepare for the worst case of
urgent reasons why everyone should be gettingbeing unemployed permanently:
their home business started whether online or off.Start a home based business either using the
These operations need time to begin bringing inInternet or some other opportunity not likely to
money; you can't just kick-start them and expectbe impacted by automation or offshoring. You
an automatic fountain of money. You can do thismay have to try two or three things before
on a part time basis which is a very good idea iffinding the right one so it's best to get into
you are unsure about your own business. Find outsomething requiring a small investment. When you
which ideas will work without risking very much.begin to succeed you can put money into a more
What are these new and urgent problems facingcostly operation if your research indicates a
us all? You really need to pay attention to this.winner.
There are ongoing issues in every business withConstantly educate yourself and obtain as many
respect to work and these problems will remainnew skills as you can so you can participate in
during any recovery and long after it goes away.opportunities as they arise. Actively look for
First is the frightening move toward employersthings to do in emerging fields. If you like one and
dictating everything an employee does at homethink you are qualified, seize the chance
or anywhere else. The latest development of thisimmediately before it vanishes.
issue is the smoking ban initiated by the MichiganRemember, the first and best defense for you is
company Weyco. As a result of its firing ofthe first option-become a home based
several workers a Michigan legislator hasentrepreneur with your own business. Even if you
introduced "lifestyle legislation" banning anare successful at staying employed, your business
employer from firing people for legal activitiesnew will provide extra income and a sense of
away from the workplace. Only a few statesfinancial security.
have such laws and the federal law covers onlyBy taking these actions you will keep the dark
race, religion, or gender. The lawmaker rightfullycurtain of negative thinking from covering up
has addressed the possibility of extension of thisways for you to successfully come through this
concept to many other areas like drinking beer orrecession. Good luck to you; keep your head high.
clothing unacceptable to an employer. Other