Save Jobs on Main Street

“I just need a job, any job, to pay the bills.” That’s what the man said when he showed up to apply for one of the 1,200 jobs Ford is offering in Chicago. Jobs are at the top of the list these days and it was encouraging to see the President recognize that fact. With interest rates near zero and the economy in rough shape, no one really knows which policies will help job growth. As small businesses employ 65% of workers are the major source of new jobs, let’s try listening more to people on Main Street instead of worrying about saving the global economy and propping up Wall Street.

Yesterday the Labor Department announced that new unemployment claims fell by 8,000 last week to 470,000. The more difficult news is that new home sales tumbled again in December. Total 2009 sales were down 23% from 2008. One in four mortgages is underwater. Even more troubling, Macy’s is cutting 1,500 store management positions effective March 6th, Universal Music Group cut dozens last week, Astra Zeneca is cutting 8,000 jobs over the next four years, and struggling car maker Fiat announced 30,000 employees will be laid off for two weeks on February 22nd. Toyota’s massive recall is blamed on growing too fast without sufficient quality control. Consumer Reports now rates Ford higher than Toyota.

The Fed says it will end its mortgage buying plan on March 31st. The economy is still so weak that they may not be able to honor that pledge. You might remember my blog about Treasury announcing it will back Fannie Mae and Freddie Mac mortgages WITHOUT LIMIT for the next three years. And for the second time in a few months, the Senate voted to increase our national debt ceiling another $2 trillion to $14.3 trillion dollars. Cyber attacks on U.S. infrastructure companies are now reported to be widespread.