Wednesday, February 1, 2012
Jobs During the Recession
The demand for jobs have been increasing because of the number of jobs lost during the recession. In this article, it shows 5 American cities that have been devastated by recession. These five cities have had barely any job recoveries if any. In cities like Flint, Minnesota, where their economy is primarily based on the automobile industry, the products are scarce, but the demand for the products are scarce. Not many people are looking to buy new cars right now because of the recession, which is hurting Flint, Minnesota because of this the number of jobs recovered are little and the poverty rate has increased. The increasing of the poverty rate put them at one of the worst rates in poverty in America. In Champaign-Urbana, Illinois, most of the jobs lost were government jobs in education because of the budget cuts. If we can't even recover the government jobs, how are we going to recover jobs in private businesses when they aren't given money by the government? People aren't buying as many products as they used to, so small businesses have had to close down and the people who worked there lost their jobs. The demand for jobs is high, but the amount of jobs are low, so we need to create more jobs like bring the factories to America like we said in class. This increase of jobs will help the economy even though the cost of the products produced might increase a little bit. The more jobs created, the better chance the economy will get out of the recession.
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3 comments:
How do we bring the jobs/factories back to America? Also, is it a good idea to reinvigorate these towns with new factories? (meaning is it a good idea to base their entire survival on one industry)
It is very interesting to think that a town could rely totally on one industry. Who in their right mind would allow an entire town to not have any variation in the job market? I think that the situation that places like Flint, Minnesota is completely and totally their fault. Had they even begun to think that a decline in the automobile industry would completely and totally destroy their local economy, they would not be in this situation at all. However, the current government is using these stories of stupidity and lack of vision to attest for the entire nation as a whole. It is not the job of the American government to bail out these failed economies, but they are. It is really frustrating that America is seen as a weak economy now because of these failed local economies. Obviously, the mayors of these towns are not thinking through their ideas properly. Take a look at Texas. The Texas economy has stayed strong through the recession because it focuses on allowing businesses to run themselves instead of trying to decide what’s best for everyone. I think that’s the problem we face in this economy. The American Government thinks they can do what’s best for everyone, when in reality; no one can decide what’s best for an entire population.
I agree with what Derek said about how a city focuses on just one industry. It's not smart to rely on only one industry because if that industry fails, like car manufacturing, they have nothing to support themselves with. It is definitely a risk to focus on one industry because it could either boom or bust. These cities need to realize that they need to have multiple industries, so they don't collapse when one of the industries failed. Also Derek said that the government involves themselves to much in these communities that are losing jobs. This is so true because when the government interferes too much they companies think they have no freedom and it will end up collapsing. Luckily Texas has multiple industries that they work in and the government doesn't interfere too much, so that they haven't been as devastated as other states.
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