Time to start eliminating long-term unemployment benefits

Since buying my staffing company over 8 years ago, I have had a unique vantage point to observe our fractured job market.  I have had individuals turn down assignments because of what they were getting in Gov’t benefits, I have had the Department of Economic Security grant benefits to folks that clearly do not deserve them, and I have posted jobs that people simply do not make the effort to apply.  It is not a popular opinion but we must phase these benefits out and soon.  Our already horrible budget deficits and entitlement  programs are sinking our national boat.  This cannot continue or there will be some horrible consequences down the road.    Unfortunately, you will never hear this tough medicine from anyone in Washington or the current crop of candidates.   The gravy train is coming to an end and our children will be paying the bill.

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How do you get hired in this market?

I am currently writing an e-book on the Kindle format about how to find a job in this economy.  I want to make the book especially for people who are currently unemployed and give them a guide that will produce 3-4 good tips in a 20 minute read.  No filler or BS.  I am covering the current job market, social media and the job search, pre, during and post interview tactics and humorous stories I have accumulated about the dumb things applicant do in my office.  I expect to have this done about the first of the year.  I am asking if there are any questions you may have that I could answer in the book.  Please feel free to comment on this page.  Thanks

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It’s the Tax Code Stupid?

The more I hash over the economic issues, the more I am convinced there is only one way to fix the problem.  Revamp the tax code…meaning throw it all out!  When I was advising high net worth clients, they had armies of people helping them avoid taxes.  The richer they were, the bigger the tax returns, trust documents and shell corporations, to hide income. Why do we need to do all that?  Because we have a huge industry of lawyers, accountants and specialists that would be out of business.  These folks make a lot of $$$  (and vote) and it won’t be easy ripping that income away from them.  Until you make it easy to pay taxes you will have problems collecting and maintaining your base because people come up with new ways to avoid paying.  Make it easy.  Everyone pays something. Lay offs for the IRS , Lawyers and Accountants are your only downside.  What’s wrong with that?

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Why should you background check your employees

Today in The Arizona Republic, columnist Laurie Roberts outlined the deadly problems of not using background checks.  In short, a contractor was hired that was performing work in a residential setting.  The contractor broke into a residence and when he found a young man home, he executed him.  If a simple background check was performed it would have told you about this violent offenders sordid past.  Basically someone would still be alive for about 50 bucks.

I realize people with crimes have a hard time finding work but that is not my problem.  Part of our job requires us  to screen people and keep dangerous ones from getting work at our clients businesses.  Plain and simple.  You only have to be wrong once for this type of tragedy to happen.  Performing a screen can save you and your company millions of dollars is lost revenue, customers and livelihood.  If you are currently not background screening and drug testing you are driving on ‘bald tires’.  Hopefully you won’t be in the newspaper someday.

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General Observations of the Sane

1- Why do we keep discussing the post office and their antiquated service and bloated budget.  Sell it to someone that can make it work.  The employees are overpaid and this program is a luxury we can not afford anymore.

2- Why does everyone wait around for the Fed to do something?  They are only printing money like toilet paper and keeping interest rates at all time lows.  Hey Fed! Do nothing…the market will adjust better by itself.

3- The stock market is a speculator driven free-for-all casino gambling institution. Beware!

4- The past week of interviews has totally convinced me that unemployment will be high (north of 8%) for the foreseeable future.  Companies will only  hire  folks that can add value on day one.  Temping will become even more practical as business deals with increased cost associated with employees.

5- Obamacare is a HUGE contributor to unemployment.  Companies are not hiring because they are concerned about the costs associated with a big Gov’t program.  Sorry liberals, this deal is an economic ‘killer’.

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Small business is still not hiring…WHY?

If you are following the stock market and expect that index to give you direction,  you are living in a fantasy world.  That is a casino style gambling atmosphere only understood by the few folks who control all the information and choose what info to divulge, all the while.  lining the pockets of the Dolts that started half of this problem..Now that I got that out of my system…

SMALL BUSINESS CREATES 75% OF THE JOBS IN THE COUNTRY.

I know I have said this before but some people just don’t get it..Prez Obama, Congress and our State officials.  Today the National Federation of Independent Business release a sobering survey you should be concerned about.  See the full article at: http://fxn.ws/pxKfvi  .  Here are the stats:

Out of 1800 surveyed

14% cut staff

12% made new hires

Their optimism index has been down for the fourth month in a row.  No new hires?..more people on Gov’t payments, food stamps (45 million people!) AND not paying taxes or spending money on goods.  There are several factors that are a drag on this economy

1- Congress can’t stop spending money.  (budget deal is a joke)

2- Looming Obama-care debacle

3- BS regulation for the little guy while bigger guy gets away with murder

4- People are just plain lazier and our recent graduates can write 2 sentences

5- Banks will only lend if you wrap a stack of cash around your loan app.

Our system of electing people is the ‘go along to get along’ program that keeps about 75% of these idiots in the same job every 2-4 years.  Economics and politics do not go together, and until we get some folks that have actually had to make a payroll  in office…we will continue to flounder through this mess.

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Turn down a job offer and get unemployment benefits??

That is exactly what the Arizona Department of Economic Security is doing right now.  I have had several cases where the temp assignment ended and another job offer was made..turned down…and benefits granted. Can you believe that?  Here are some others I have learned about:

– Tested positive for drugs on the job- Unemployment benefits granted

– Not showing up for your shift and not calling-Unemployment benefits granted

– Stealing from the employer-Unemployment benefits granted

– Saying you are moving out of State and quitting  job-Unemployment benefits granted

I have many cases that illustrate the lunacy that permeates the DES.  The cost of this travesty is driving up the expenses of every legit employer in this town.  We have a fixed amount of benefit money for the people who deserve it, and they will be shortchanged by the DES so they can support people who don’t want to work.  Think this doesn’t affect you??  Well?

– Do you think some ‘Fairy’ flies down and pays these benefits?

– The increased cost to business makes fewer funds available to spend in the economy

– The cost is passed on  to the end-user ..Oh that is you!

– Less money to spend, means less hiring by business.

I have forgotten to included the cost in man hours to deal with the “DES Kangaroo Court’.  Phone hearings, paperwork, responses, and administration work to give benefits to deadbeats.  Most companies have to employ one person just to deal with them.  Boss Hog from the Dukes of Hazard would be proud to run this group of people.

If this is something that bothers you, please forward to your friends.  I can provide real cases to back up what I am saying, I bet you can find a few folks who realize the DES stands for Destructive to Economic Security

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Recovery is Stalling! Why?

Well…that is a very good question.  So how about some bullet point answers:

1- The flooding, tornadoes, and other disasters are taking a big toll.  When you are digging out your house, you are not working and the companies/ businesses that produce are idle…problem

2- Federal debt has capital scared to deploy.  Long term fix requires harsh cuts in Medicare,  Social Security etc.  Who has the huevos to do it?  Not anyone I have seen!

3-You can’t get a loan without a major proctology exam along with a severe beating.  No loans, small biz can’t grow.  Simple math.

4-Our major industry..construction is in a depression.  What will take its place?  Better question..what 5 industries can take its place.

5- Healthcare plan on horizon.  Don’t like it?  Then get a waiver if you are big enough.  The rest of us just get the shaft.

6- Wage scales in AZ are on the low end and will continue that way until demand picks up for goods and services.  Can’t buy homes, cars, education, clothes, food and gas on poverty level wages..oh and these folks are not paying taxes.  Local AZ Government receipts are down and the food and sales tax increase is being used to help support the bloated salaries and benefits of top officials…not on your schools system.

Going forward we need more representatives that support the small business person…not necessarily the big biz people…they got their bailout.   Small business creates 75% of the job growth and we are wading through the mud of over regulation, lack of capital availability and a generally poor business realtionship with the folks in Washington D.C.

Muddle through people…we will make it!

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SBA (Small Business Admin) Loans should stand for ” No Loan”

I have been working through our friendly neighborhood SBA loan program.  It could be the most degrading process ever invented.  Every step of the process is designed to be as painful as possible..quite like doing dentistry in the 18th century.  Not only do you have to provide about 7 inches of paperwork, you must endure idiotic questions from an underwriter that would have trouble running a 2 person convenience store.  Why this is so troubling is that our Federal Gov’t didn’t ask any of these questions of Goldman Sachs, Bank of America, or AIG  that were given billions.  Heck, their financials were prepared by the same person that bills out $700 toilet seats at the Pentagon.  Not only does the financial institution get a75% loan guarantee by the Feds (meaning you an me) they want additional collateral for the 25% that is not covered.  SO…they only want to make risk free loans.  Any business that needs a 100%  backing  should not be in business at all. This leads me to 2 conclusions:

1- 75% of new business growth comes from small business.

2- Small business can only apply for risk free loans.

Pity we don’t realize under these conditions the employment and economic picture will continue to be murky because we appreciate the 25% of the job market that eventually lead to the greatest economic boondoggle in 200 years.

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Job Growth Will Stall…WHY?

Let’s lay out some facts:

1- Gas prices are going through the roof

2-Transportation costs for goods are increasing, capacity to move goods has shrunk

3- Small business creates 75% of new job growth

4-Raw materials, insurance, workers comp claims, Government regulation has increased

Take these increased costs out of an already strained budget and you have less money to hire people.  In Arizona, we have a car based economy.  Everything you purchase is moved by a vehicle.  When fuel prices go up, who pays the increased cost?  Some magic fairy?  No,  business and the consumer.  The transportation industry has been taking it in the shorts for years, so they decreased their fleets (less trucks) and now we will all compete for a smaller logistics system to move goods…meaning you will pay more.

It will take time for business and consumers to adjust to the new increases in cost.  Only after this happens, will we be able to move the job market forward…for me its looking like next fall.

 

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