Sunday, February 15, 2009

We Need Jobs That Will Last (As Seen in the Joliet Herald)

With Circuit City, [Linens & Things] and Office Depot closing, the area around the Westfield Louis Joliet mall is starting to take a turn for the worse. I doubt that the stimulus package being proposed in Congress will really do much to help our local economy in the long run.

Republicans claim there is a lot of pork in the bill. Democrats counter that the bill provides a lot of job creation. Both are right, but they are missing the boat on the types of jobs being created.

We are going to repair roads. Fantastic, but what happens when the roads are all repaired or the money runs out? Where do those jobs go? They disappear.

We are going to build a new polar bear exhibit at the zoo. A great idea, but what happens when the exhibit is finished? Where do those jobs go? They disappear.

See the trend? Jobs are created but eventually disappear.

Republicans want more tax cuts in the plan. I like the idea of more money in my pocket, but I don't think tax cuts will fix our problem. With so many Americans behind on mortgage and credit card payments, that extra money will go to the banks, which in turn, aren't lending like they used to.

Now, I'm no economist, but I have an idea -- permanent, sustainable job creation. Most of the projects in the current stimulus plan are ones with clear beginnings and endings. This stimulus package appears to be nothing more than an $850 billion bandage. Sure, a lot of infrastructure projects are desperately needed, but there doesn't seem to be a plan for permanent job creation.

The stimulus package needs to be about creating sustainable, permanent positions.

Let's say ABC Co., in Joliet wants to sell more widgets but can't afford to invest in another staff person. The stimulus bill could provide ABC with money equivalent to one year of salary and benefits to hire a salesperson. That person then makes sales and eventually sustains the position with the revenue brought into the company. Demand for widgets increases, and the factory has to hire another person to keep up with production.

Maybe the increased sales create more administrative work, so an administrative assistant position is needed. This one permanent, sustainable sales position created by the stimulus bill could create other permanent, sustainable jobs.

And those types of jobs are what this country really needs.


Correction:  The original article mentioned "Bed, Bath, and Beyond" as closing when it should have been "Linens & Things."

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