Good solutions are based on a combination of common sense, sound business principles, and business experience. Because 50% of American workforce is comprised of individuals who have not advanced their education beyond high school and because we have lost so many of our manufacturing jobs, it is paramount that we have some political representatives with business experience at this level. I do not suggest that we increase spending at this level. I suggest we look at this extremely large segment of our economy, understand what is wrong, and fix it. Small business is the cornerstone of the American economy. Our political candidates, regardless of the office for which they are running, do not understand that the needs of the average American are best served by focusing their efforts on creating a business environment where small business can flourish.
Small businesses generally fall into two groups: professional and blue-collar. Both groups contribute significantly to our economy and to the creation of jobs. However, blue-collar small business employers require special attention.
Blue-collar small business employers play a unique role in our economy. These are the employers that are needed by students who don't finish high school and high school graduates who do not continue their education. Blue-collar small business employers also provide second chance opportunities for those who have spent time at correctional facilities. In addition, blue-collar small business employers provide opportunities for those pursuing career changes and/or those who are late entrants into the workforce. This group of employers continually invests (often with little or no return) a tremendous amount of money in on-the-job training efforts. Employees of blue-collar small business are the first to be laid off or out of work; they are the last to find re-employment and the first to utilize social insurances. The socio-economic group that comprises blue-collar workers is significantly larger than the remainder of our workforce. For this reason, if blue-collar small business employers fail to thrive, our entire economy is severely affected.
According to the Small Business Administration, small business is responsible for 80% of this country's newly created positions, and represents 99.7% of all employer firms. If small businesses are hiring and competing for employees, then our blue-collar workers will be in high demand, and everyone who wants to work will be employed. This also means that everyone has a paycheck and is again spending, which in turn creates more jobs (at all levels) and more profits, the best scenario for all.
If small business fails, who will provide jobs for the 50% of our workforce that cannot or choose not to pursue post-high school education?
The FDR Approach- There has been discussion about new public works projects. The problem with public works projects is that they would be paid for from government revenue (or lack thereof), which means that the government increases its own debt, which they can't afford already.