Unemployment: What’s to Blame?
Posted: 08:44 AM ET
Former Federal Reserve Chairman Alan Greenspan predicts U.S. unemployment could hit 10%. Currently the nation’s unemployment rate is at 9.8%.
So, what do you think is most responsible from the worsening employment picture: a failed stimulus package, an economy much worse than we knew, employers cutting deeper and hiring more slowly than expected, or something else all together.
Leave us a comment. We’ll share some of them on air in the CNN Newsroom, 11am ET — 1pm ET
So there we are. A picture and a set of points on why we are where we are with unemployment. Now what about this idea.
First, there is an issue of Greed. A small percentage of the global population has accumulated a massive amount of wealth. I am not here to judge the right or wrong of how they or their ancestors acquired the wealth. I am here to suggest looking forward.
- 100 million dollars a year as a salary to hedge the price of gasoline and contribute to raising the profits and consumer costs associated with oil.
- $17.2 million to successful sell Visa inc, to the market, earning bankers a significant return.
- Numerous excesses that programs like Nip/Tuck mimic for Wall Street millionaires.
- A stock market that has a curve that simply should not have been allowed. Long term prudent economic management is essential.
Ponder this. If equities is suppose to represent the inherent stability of the corporations that employ our neighbors; what happened starting in 2000 and culminating in the bear Stearns collapse in 2007. Is Wall Street unravelling the growth that began in 1982 and went into a hyperactive phase in 1995, and simply correcting itself.
What next should represent a step change in how we think about governance, compensation, risk, responsibility and morality.
What I think a lot of us forget is that our society evolved over millennium and here we are thinking we are so important. What is important, is being faithful to a common morality, and making sure that we leave something better for our children.
I agree with the Dali Lama, all we want is peace and happiness.
So what next?
- Cap salaries for the rich at 2 million per year.
- Institute a managed health system that still uses the concept of insurance and hedging risk to fund our healthcare system.
- Introduce a health management system, with a basement for those that cannot afford even the most basic plan.
- Re-introduce exercise in the school system and subsidize community gyms and recreational facilities.
- Re-introduce the luxury tax for non essentials over $30,000 and on things that are not good for you or are excessive. Say anything not associated with your food, transportation and housing.
- Focus on better educating the family practitioners, gynecologists, internist and pediatricians so that they do a much better triage and assessment of appropriate care given available resources with fear of reprisal for taking risks. If necessary, require an additional year of service at a teaching hospital earning a reasonable income say $120,000.
- Do a lot of what Congress is already talking about
- Strengthen the VA hospital and medical care system
- Do not mess with Medicare or Medicaid, until the new system is in place. Let the people move to the free market approach.
- Do not create a Government run insurance system. Yes to creating a open market, knock down state borders and promote re-introduction of the original Blue Cross Blue Shield concept of a co-operative not for profit solution
- Focus on regulating the quality of care with a no one left behind principle.
- Keep the insurance companies out of setting fees. Manage thje cost of the healthcare system by focusing on competition. The patient is the client and is to be saught after without offensive advertising.
- Mandate a National Id card keying off the social insurance number. Combine it on the Drivers license, as a day one requirement.
- Focus as a corporate priority on employment being the key indicator of success. Begin discussions on Right to Work legislation and stimulating more humane approach to managing down costs in a period of economic recession. Reduce executive wages well before the first person can be let go, without cause.
- Merge all the work in the fields of governance, risk and regulation into a replacement bill.
- I could go on.