The damaging combination of unemployment and underemployment has left more than 17 million U.S. workers seeking fulltime jobs. There are few signals that the country, which needs to add more than one hundred thousand jobs each month just to hold steady with population growth, is on track to increase employment.
What’s holding companies back from hiring? Economic uncertainty.
The lack of policy stability has created crippling uncertainty for employers. The homebuilder has little sense of whether underwater homeowners will be bailed out or pushed into bankruptcy. The answer determines if he should build, and where he should build. In corporate offices across the country, 2012 budgeting is underway. Executives are asking, “Do I add more people into my plan? What level of growth is reasonable?”
As the nation stagnates, policymakers can improve the climate for business.
What if Congress declared a two year moratorium on the development and implementation of new regulations? Managers and business owners could breathe easy – turning their focus to creating new innovations, improving operations, and delivering customer service, rather than keeping up with costly, new mandates.
What if the President summoned the nation’s best and brightest to contribute to the private sector? If every able American thought about how they could improve the business they work for, or start a new business, imagine the flourishing that would occur across the private sector! Right now, putting people to work – allowing employees to provide for their families – is a noble purpose.
If we create a more predictable environment for business to grow its earnings, businesses will pull the rest of the economy along. As companies grow, so does their compensation to employees, their contributions to community, their dividends to their shareholders, and their relationships with their suppliers. This creates the virtuous cycle that leads to new growth and ultimately new jobs.
Why are we waiting?