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Pay no attention to the people behind the curtain

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Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Monday, August 08, 2011

The 39,000 Jobs Hoax

By Keith R. Schmitz

The Walker administration and the six Republican state senators involved in this week’s recall election are throwing out the claim that the changes they have brought to state government have led to the creation of 39,000 new jobs. The media is allowing them to make that brag as well.

The six GOP targets have to sell this idea. Their jobs are on the line and if there is a metric people are looking at for all politicians right now, it is job creation. During last week’s debate in Menomonee Falls hardly ten minutes went by without Alberta Darling bringing up these job numbers and how wonderful their programs are.

For this discussion, let’s not talk about the quality of these jobs. After all, Walker chased away what would have been 5,000 good paying jobs with a future connected with extending the high-speed rail line before he even took office.

The question here is how can Walker, Darling, et al tell you that they helped create these jobs, when the realities of business tell you otherwise.

He Swears the Jobs are His

So we are to believe that the moment Scott Walker raised his right hand to take the oath of office for Governor, those jobs started popping up like mushrooms?

Usually businesses look for new hires when they have something for them to do. It would be mind stretching to think that just because someone is a fanatical Walker supporter that they would be bringing people on just because Scottie is at the helm. Not these hardnosed captains of industry.

For existing businesses, new faces generally start appearing only after a business sees a rise in revenue thanks to customers walking through the door or the sales force putting orders on the books. The evaluation process often takes months for a number of reasons and even then it’s not like people just start popping up, because recruitment takes some time.

Sure there can be new businesses opening their doors but even the planning for those is months in the works.

Origin of the Jobs?

The point is that the Walker/Darling/GOP assertion of creating 39,000 new jobs since January is ludicrous, given the way business works. It is also ludicrous because an administration has to do something to earn the credit for job creation.

A couple of times during the debates, Darling mentioned that 85% of Wisconsin business leaders said that Wisconsin is heading in the right direction. Make that 85% of the membership of WMC, a wholly owned subsidiary of the Republican Party.

Now if anyone would be hiring because of giddiness over having Walker in office, it would be them. It would be interesting to find out how many of these companies have brought on new employees since they are among the state’s very largest companies, though we would never know when they actually started to think about adding these jobs.

Where Credit Is Due

The GOP crowd may not like to see this, but just about all these jobs probably began their gestation period back during the Doyle administration, with a big help from the Obama stimulus. There are in fact several companies here in Milwaukee that were able to launch new ventures thanks to stimulus funds, ventures that included high paying jobs.

Again, raising your right hand doesn’t count. In reality there was nothing Walker and the GOP did until he signed the budget back in late June. So even then, the clock didn’t start ticking until ink hits paper, so we are still many months out before we know if the plan works.

In between was the signing of the so-called budget repair bill, not a big booster to business. In fact it could be argued the other way. State employees make up 18% of the state work force, and with this large of population saying good bye to a large part of their salary; a number of stores, restaurants and other businesses will see a significant drop off in sales, especially in cities that have large concentrations of public employees such as university towns and places the have correctional facilities.

Let’s get back to the timeline. Walker signs the budget in late June, and any job creation they could take credit for would be legitimately in Fall.

May Not Be a Merry Christmas

But even with the holidays coming, the job picture may not be so rosy. In fact there are reports that this year parents have not let loose with back to school spending.

By then the recalls will be history, but we have some big events to look forward, mostly the prospect of a Walker recall, and his buddies in Congress have not been too helpful.

With the new Congress sworn in, there was as some pundits put it, “a lack of interest for more stimulus.” For many like our US Senator Ron Johnson who proclaimed that “the stimulus didn’t create a single job”, the country is finding out what the real impact of the stimulus is by its very absence. Johnson and his cohort ripped the tubes out of the patient just as the economy was recovering.

Most recently there is the horrible debt ceiling agreement. The right wing loves to assert that government jobs are not real jobs. The problem is that these people are being paid real money, which flows into the real economy and cut off that flow, the economy suffers. Many economists are predicting the loss of hundreds of thousands of jobs once the debt ceiling agreement kicks into action.

Many of these economists are saying that extreme cutting is the last thing this economy needs. And we will soon find out if they are right. That may be by the end of the year, and that’s not good news for Walker.

There is speculation about when the long anticipated recall of Walker kicks into gear, ranging from around the end of 2011 to the 2012 general election. Either way, if the double dip recession hits, probably nothing Walker has done will avert it. Worse, Walker’s budget shredded the social safety net in Wisconsin, amplifying the misery – and heightening the anger against him.

If things play out, it will be Walker who will be joining the ranks of the unemployed, needing to get his first real job since college.

This is of course known in the trade as poetic justice, except we will be the ones paying the price.

Wednesday, December 15, 2010

I'll Have What They're Having

By Keith R. Schmitz

Next time the screamers on Talkradiostan throw up the usual cant about "Madison being an island surrounded by common sense" think about this, and think about our giant thought leaders in Milwaukee too gutless to stand up for the train expansion.

A nearly half a billion project, 10,000 jobs, shops, restaurants and homes. Yeah, tax cuts will solve everything.

Thursday, October 07, 2010

Whistling Dixie Over China

By Keith R. Schmitz

Want something to really worry about?

China is starting to invest in its people. Meanwhile, this country is seeking ways to whittle at our education system and is engaged in contentious battles with its educators.

Case in point why we should be concerned. About five years ago in Beijing, stopped in at one of their popular Border's style bookstores on Wangfujing Street on the way to the Forbidden City.

On the first floor, where the Harry Potter and the latest right wing rant and rave books should be there were books on math and science, and even customer service books broken down by industry. They had a full free standing bookshelf on differential calculus.

Second floor was devoted to books and other media on how to speak and read English. By the time you reach the third floor there were the popular titles. Not a formula for retailing success here, but when you look at the big picture, not pretty.

This is not a lesson necessarily though on selling, but on selling us out.

Tuesday, February 10, 2009

Business Looking for the Defibrillators

Keith R. Schmitz

There is an automatic assumption on the part of some that business people walk in lockstep with the Republican party.

That notion of course has always been wrong, and lately more wrong. The US Chamber of Commerce is pressing for passage of the Senate version of the stimulus package. The reliably right wing National Federation of Independent Business is saying that the current version of the bill is not enough.

Guess there are no free market capitalists in economic foxholes.

Below is a copy of a letter (with some edits to keep the writer anonymous) from a friend a mine in which he emphatically pushes Senator Kohl to support the stimulus. My friend makes a lot of sense and with the vote in the Senate pending, lays out real business world reason why we need this plan to pass.
I am a small Wisconsin business owner. I am writing specifically to comment and note my support for President Obama’s stimulus plan.

Because of the current economic conditions and the slowdown my company has experienced, I’ve had to trim my work force in one plant from (12) employees to (6)—letting my Production Manager, a Draftsman, our Secretary and (3) shop employees go. In Wisconsin, I’ve had to eliminate (6) jobs on the manufacturing floor and fire my second Mechanical Engineer.

While times are very tough, I’m encouraged that we have as many projects quoted and pending as we do. We’ll continue to do what’s necessary to persevere and weather this storm.

But I’ve written about the stimulus package. The suggestion by Republicans that it’s more of the “tax and spend” ways of the Democrats is ludicrous. In these difficult economic times, this is exactly what the country needs—programs that will put people back to work, while working toward long term goals such as alternative energy. As well, the package will help those currently out of work by extending unemployment benefits and healthcare.

The Republicans do NOT speak for this business owner. The suggestion that the stimulus package needs more tax cuts is preposterous. First statistics show that providing tax cuts to businesses will not increase employment rolls. As a business owner, I can attest to this. I will not employ anyone else because of a tax break I might get. Why? Because we DON’T HAVE WORK! If our business is down, I cannot afford to hire anyone whether I get a tax break or not. We’re talking survival and cash flow.

As for individual tax breaks, how is a tax break beneficial for someone who is out a job?

Let’s put people back to work and get this country back on track. Please encourage our Democratic Senators to be more vocal in their support. I just read an article on Yahoo that suggested President Obama is “losing message war on stimulus plan”.

If I can help in any way, please let me know. I am very interested and energized as a result of President Obama’s election.

Wednesday, December 03, 2008

The Wall Street Journal must not listen to Charlie Sykes

by folkbum

If they did, their "MarketWatch" subsidiary wouldn't have done this:
Milwaukee moved up two spots on MarketWatch's best 50 U.S. metros areas for business, and outpaced cities like Austin, Texas, Chicago, Los Angeles, and Portland, Ore. The area moved up to 16th place in 2008, from 18th a year earlier.
Sykes--along with his bosses at the WPRI, Belling, the local conservative bloggers, the WMC, the MMAC, and many more--have all been hair-on-fire screaming about the business climate in Wisconsin and particularly in the the tax-island/ tax-hell of Milwaukee. Apparently, the numbers suggest otherwise, and MarketWatch recognizes that.

You'll note that I'm quoting above from a "newswatch" story from jsonline yesterday. I wanted to quote from their full article today about the rankings, but the paper seems not to have done anything with it today. In fact, here's the on-line business section as it looks right now:



Nothing about the MarketWatch rankings. I had to google news even to get to the whole list from MarketWatch. I'm not sure why the story is not important, why, after all the headlines about Milwaukee's poor business climate and the paper's editorial insistence that everything (like the sick leave requirments) will kill Milwaukee's businesses, they can't front-page some good news. Must be something going on above my pay grade.

Thursday, June 26, 2008

Another Deregulation Success Story

By Keith Schmitz

From the Center for Media Research
According to the Travel Industry Association (TIA), deep frustration among air travelers caused them to avoid an estimated 41 million trips over the past 12 months at a cost of more than $26 billion to the U.S. economy.

The study, conducted by the polling firms of Peter D. Hart Research Associates and The Winston Group, demonstrated that air travelers express little optimism for positive change, with nearly 50 percent saying that the air travel system is not likely to improve in the near future.

Roger Dow, President and CEO of TIA, said "... more than 100,000 travelers each day are voting with their wallets by choosing to avoid trips."

Dow noted that the 41 million avoided trips during the last 12 months rippled outward across the entire travel community:

Costing airlines more than $9 billion in revenue
Hotels nearly $6 billion
Restaurants more than $3 billion
Federal, state and local governments lost more than $4 billion in tax revenue
Conservatism. Making life better for business and consumers.