Update for President-Elect Obama

By Dr. Edwin Weaver

www.uniqueleader.org

www.we-develop-leaders.com

January 9, 2009

With less than two weeks until Barak Obama becomes our next president he is running into problems already. His fellow Democrats are not in favor of his budget cuts and tax cuts even though he has acknowledged that the US is in dire straits (JENNIFER LOVEN, AP White House Correspondent Jan. 08 2009) and something must be done.

We all know you have, what is supposed to be, some of the greatest minds in the country working on these problems. They have given you advise on how they think the country can be saved from this economic crisis. However, Mr. Obama, either they are not fully informing you of all pertinent data or it is just being ignored.

Let us look at some of the research data that the newspapers do not print. A report issued in 2007 (using data accumulated over 45 years) tells us that there is significant and lasting negative effects of displacement for workers displaced during their prime earnings years, ages 35-53 (which is the age of the majority of the workforce who are losing their jobs). What does that mean? Very simply, when a person losses his/her job there are long lasting negative effects to the person and the economy.

Our own government (Dept. of Agriculture) has done research on the negative effects and concurs with results found by [ Brenner & Starrin, 1988; Buss & Redburn, 1983; Dooley, Catalan & Willson 1994; Hamilton, Broman, Hoffman, & Renner, 1990; Hamilton, Hoffman, Broman & Rauma, 1993; Kessler, House & Turner, 1987; Iverson and Sabroe, 1988; Leana & Feldman, 1992; Liem & Liem, 1988; Ware, Jackson, and Banks, 1988 ] which tell us that individuals, displaced workers, experience heightened feelings of anxiety, depression, emotional distress, and hopelessness about the future, increases in somatic symptoms and physical illness, compromised immune system functioning, lowered self-esteem and self-confidence, and increased hostility and dissatisfaction with interpersonal relationships.

In other words, once a person loses his/her job they are depressed and they lose their confidence and feel hopeless about the future. Now I ask you Mr. Obama, if a person feels this way how likely are they to go out and buy things? After all it is spending money which will cause the economy to recover, true? If the people do not buy things, the companies will still go bankrupt. If the companies go bankrupt they default on their loans which cause the banks to go bankrupts; meaning more bailouts, etc.

Looking at this information what would be the best plan of attack to save the economy? Just give banks and companies bailout money? They did not operate their banks and companies correctly before, what makes you think they will do any better after you give them money? Let us look at the truth, they are wasting the money or using it for themselves. Will the bailout save our economy? How does that help the average worker? 

1.6 Billion dollars has been used for a handful of bank executives (FRANK BASS and RITA BEAMISH, Associated Press Writers Dec 21, 2008). That 1.6 billion would have kept 40,000 Americans working for the next 12 months. How many have lost their jobs so that these few can get their bonuses? Those 40,000 American would still be employed, still spending and that is what will bring the country out of this depression.

The only solution Mr. Obama is to keep people working in their present jobs. I have said it before and I will say it again, keep the people working in the present jobs! You will overcome the emotional hardship and the financial hardship experienced by displaced workers (people who have lost their jobs). You will keep their spirits up and the spending habits will return. If you continue with just your stimulus plan and putting people back to work, instead of protect current jobs, you will face a depressed America and a long, long economic downturn.

It is your choice Mr. Obama. What will you do?

References:

Baumol, William J., Alan S. Blinder, and Edward N. Wolff. 2003. Downsizing in America: Reality, Causes, and Consequences. New York, NY: Russell Sage Foundation.

Bellah, Robert, Richard Madsen, William M. Sullivan, Ann Swidler, and Steven M. Tipton. 1985. Habits of the Heart: Individualism and Commitment in American Life Berkeley: Univ of California Press.

Baumol, William J., Alan S. Blinder, and Edward N. Wolff. 2003. Downsizing in America: Reality, Causes, and Consequences. New York, NY: Russell Sage Foundation.

Bellah, Robert, Richard Madsen, William M. Sullivan, Ann Swidler, and Steven M. Tipton. 1985. Habits of the Heart: Individualism and Commitment in American Life Berkeley: Univ of California Press.

Burgard, Sarah A. Jennie E. Brand, and James House. 2007. "Toward a Better Estimation of the Effect of Job Loss on Health." Journal of Health and Social Behavior.

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