Since I am already in trouble and angered a few people, I will expand upon my view in an effort to clear the air. Feel free to post your views/comments below and tell me how stupid and wrong I am. I don't mind, but I do hope that if you disagree, tell me how I am wrong, not just that I am stupid.
I don't believe my stance on this to be overly cynical, rather I see myself as realistic and my stance as what is preventing the economy from regaining traction. I don't claim to have answers because I trust there are people smarter than me, much smarter than me, trying to solve these issues. I just think I get it, whatever 'it' is.
Let's use
Janesville, Wisconsin (near where I grew up) as an example.
Janesville used to have a GM plant that employed the vast majority of the cities residents. That plant is now empty and all of the people at GM lost their jobs. The city now has a lot of unemployed people, lets say 10,000. Those 10,000 now have no or little income, which means that the other stores around the area become impacted because there isn't as much money flowing through the city. Meanwhile, the former GM workers were used to a lifestyle that they are not going to find anymore. Those GM jobs are accustomed to a lifestyle that doesn't match the value of their skills in our economy. You cannot make $70,000 in
manufacturing anymore because GM isn't going to pay you $70,000 if they can pay someone else $40,000. That math doesn't take an economist to figure out.
Ok, so now
Janesville's resident are cutting their budget because of the tough economy and every store is hurting in town, except one. There is one store that has weathered this recession, and that is the ever-popular
Wal-Mart. Instead of going to Target (a little classier and therefore pricier of a store) many former
GMers find themselves going to
Wal-Mart because they have to stretch their
unemployment check.
Wal-Mart's sales grow, so guess what, THEY NEED TO HIRE MORE PEOPLE. They post openings for associates at their store. You get paid $12 an hour and might have to work weekends and some holidays.
This is the dilemma facing many of our unemployed and laid-off workers, right? Do I take this much less desirable job, for much less money? I (the
hypothetical me) used to make ~$70,000 at GM, never worked a weekend, and never worked a holiday. Why should I have to do that now? Well you have to do that now because the economy has shifted, and likely isn't shifting back.
The second type of person I see is the person that wants to do 'JOB A,' despite that job being completely either unreachable or
inconceivable (think, 'I want to be a
CSI agent). I believe that people should always pursue their dreams. My wife and I are pursuing ours, there is no reason you shouldn't pursue yours; however, you need to research your dreams to make sure they are reachable and what it takes to get there. I am not a dream crusher, but if you are 30 and have kids, you might not be able to become whatever you want. For example, I want to be a writer for a living, but that isn't going to happen. I didn't choose the right path or make the right choices to get there. My options are continue down the path I am on now (which I like) or quit work, go back to journalism school, and become a journalist (which has about as much job security now as working for GM). My mortgage prevents me from being unemployed, so I work where I work, progress my current career, and have plans to someday write for a journal in higher education (obviously down the road since I am not even close to experienced enough yet) or teach at a local community college. Oh, and I fulfill my itch to write to writing this BLOG that gets 5 readers a month (I actually have no idea how many people read this and assume twitter has brought in a few more eyes, but not many). Part of me also wants to direct a non-profit company, so I am taking the steps to volunteer through Big Brothers/Big Sisters in Milwaukee. Instead of waiting for my dreams to find me I am doing what I can NOW to get where I want to be in the future. Think about Katie's life right now. She wants to be a
pediatrician, but I bet she doesn't want to work 80 hours a week, or have only 4 days off a month, but those are the steps she must take to get there. If you want to reach your dreams, take the steps required to get there because there probably aren't any short-cuts.
Lets more forward 3 years. Both the GM workers and the 'I want my dream job' unemployed have settled for lesser jobs working customer service and retail. These jobs pay less, but they pay more than being unemployed. So there is more money circulating through
Janesville, which allows stores (like Home Depot and Starbucks) to survive, restaurants don't close, and the general economy of the small city doesn't collapse. I believe it would actually grow because as the economy moves up, more businesses (assuming Jim Doyle stops raising taxes) would come in and create more jobs. This drives up the amount places are paying because they want to hire the best employees, not just the leftovers.
If people don't take jobs, those stores close.
Wal-Mart closes. Home Depot closes, and eventually the city turns into a ghost town.
Maybe I am cynical, but I think I get this situation. If my employer told me today (since I work today) that my services are no longer needed, I promise I would find a job. Not because I am spoiled or privileged (although I am very blessed), but because I would evaluate my worth in the job market (not what I feel I am worth) and then find a position that matches those evaluations. I wouldn't hold out for a job in journalism or as a consultant because I am not experienced or trained to do those.
Searching for a job is a very painful and humbling experience, I believe that is why many job searchers are so jaded. It becomes easy to assume that there is something working against you (looks, race, job market, etc.), but in the end, if a company believes you can add value to their company, and that your value will outweigh your costs, they will hire you. For example, if my employer felt that they are paying me more than I am worth, they would let me go. If
Wal-Mart thought I would bring in more money than they would have to pay me (total cost, not just salary), they would hire me. Makes sense.
My advice to job searches, really anyone who might be looking for a job ever, is to set a foundation NOW for a good job search. Maybe you need to start planning weddings for free to start a successful wedding planning business. Maybe you need to volunteer your time doing something to gain some experience. Maybe you need to take that entry-level job and work your way up through a company. You might have to change your lifestyle for awhile, but in the end you have established (hopefully) the career that you were hoping for, right?
Labels: economy