The news tells me that home prices are bottoming out — really this time. Talking heads assure me that gas prices are dropping in many areas. The dollar is getting better, they claim collectively, in robot-like unison. However, this economic skeptic isn’t inclined to pop open a bottle of bubbly just yet. In spite of my numerous attempts to feign excitement over this seemingly wonderful news, according to a Conference Board study, I’m like just about everyone else in America when I say that, right now, my consumer confidence sucks.
Everything You Need to Know About Consumer Confidence
According to a recent study, consumer confidence is at its lowest point in five months, even though things seem to be on the verge of looking up. Then again, consumers today are smarter than what they were several years ago.
Consumers today understand that without jobs, it doesn’t matter what the price of anything is. Because without a job, you have no money to pay for things, no matter how inexpensive they might be.
The Unemployment Rate
Despite the fact that President Obama assures us that the private sector is doing “just fine”, staggering unemployment numbers and a recent bank downgrade would argue against it.
The unemployment rate has steadily been above eight percent for much of Mr. Obama’s presidency. As it turns out, the “shovel ready” jobs he promised Americans weren’t exactly shovel ready, and Solyndra is a perfect example of yet another failed jobs initiative spearheaded by the unsuccessful job creators in the Obama administration.
What’s the Answer?
To ask White House cronies, the answer is more class warfare. The president and his constituents continue to bulldog job creators attempting to vilify them to the middle class. They do this even in the wake of the fact that the recession actually reduced income inequality in the United States, since “ending” in 2009. But the truth is, political rhetoric doesn’t create any more jobs than pandering to your base does — that only gets you a second term in the White House.
So, What’s the Real Answer?
The thing that the eggheads in Washington don’t seem to understand is the one thing that smart people do: Job creation requires creative legislative incentives for big employers to hire more people.
The easier it is for bigger companies to hire people without increasing too much overhead, the more inclined these companies will be to hire people. This, in turn, means that smaller companies like mine can start expanding too, and eventually move to hire people.
Want proof? According to a survey in CareerBuilder, the top 10 hiring companies in 2011, were “big” companies. The rich don’t create jobs? Baloney. To add insult to this antiquated argument, check out Inc.com’s list of top hiring companies in 2011. Guess what? They were all “big” companies too.
Class warfare doesn’t just hurt consumer confidence, it hurts Americans. Don’t you think it’s time to stop listening to the talking heads and start listening to the numbers instead?
Because, while the numbers might tell a different story than what you are used to hearing, the numbers do tell the truth.
More from this Contributor:
The Financial Elephant in the Room
Money Management on an Irregular Income
Taking the Mystery Out of Market Value