This page has been archived and commenting is disabled.
Wendy’s Story - Cleveland Jobs Challenge
I wrote an article
recently that was critical of Congress’s action to pass a bill
extending unemployment benefits. My primary objection was that our
lawmakers chose to pass yet another deficit spending bill and used the
“emergency” loophole that eliminates the need for Pay Go.
I got lots of feedback from this. Everyone hated my position. Some said
that we needed a $500b deficit package (ala Krugman) and that my
objection to a lousy $34b was misguided. Others said that there should
be no extension of UI at all. A good number suggested that I was a
heartless S.O.B. that had no idea what it was like to be unemployed in
America today. The later group got to me. I have had an exchange of
emails from one person that is facing a wall. She is from Cleveland. Her
name is Wendy. Some comments from her:
I was
wondering.... Have you ever been scared, really scared?
You
speak about H.R. 5618 because it is adding to the debt of the country.
My thought is you are so self absorbed that you would stop reading
this email right now because "unemployed Americans are not worth it"
Have another martini in your condo in Miami and rest easy knowing
you will never be me. Make sure your children and grandchildren know
what you are and what you believe, maybe they already know dad is a
selfish cruel Bastard who believes money is the most important thing.
Thanks to people like you I will continue to go to bed scared of
tomorrow. Sleep wellWendy,Children: Jessy and Parker
I
live in Cleveland, Ohio and am the sole supporter of my children. We
can't pay the mortgage, utilities etc. today. The point for those like
me there is no future- we have to get through today- eat, clothing- I
can't buy detergent today.
I
am a Special education teacher with my Masters degree-- with out a job.
I did what the President said, "go back to school". I took out loans
and studied hard to fulfill the dream of being a Special Education
teacher. I don't want a hand out, just a hand up.
I have to admit that this exchange got to me. There have always been
people like Wendy who fall through the cracks. But we have not been
through times like the ones we are living through for 80 years. I feel
sorry for Wendy, I wish she and all the other Wendy’s did not have to
wake up feeling scared. I would like to help her get a job so she could
get through this period. I know no one in Cleveland and I doubt that the
great state of Ohio is hiring any teachers these days. So she is out of
luck.
Possibly someone can help her. I would like to provide some inducement.
Here is my proposal:
I will put up $6,000 in cash. $3,000 goes to the employer as an
incentive to hire Wendy. No strings attached to that. If a job is
offered and accepted they get the money. They can do with it what they
wish. The other $3,000 goes to Wendy. She gets the money when she takes
the job. This is no freebie.
There is a caveat to this. The job that is offered must provide
compensation to Wendy that is equal to or greater than the unemployment
benefits she is getting. I would like to see that there were health
benefits available at some point. She needs that. The goal here is to
get one person back to work and one less person unemployed. The goal is
to minimize the fear factor. That is no way to live.
So Cleveland, do you have a job for Wendy? If anyone wants to see the
color of my money I would prepay it to one of the Cleveland media to
hold pending a job offer. I have nothing to gain here. Just trying to
help someone out who clearly needs a little help.
I don't know Wendy. My guess, just from reading her words, is that she
would be a good hire for someone. If an employer with a job wants to
take advantage of this offer they should contact Wendy at kindnessmatters2010@gmail.com. Alternatively you could
contact me, BGK.WENDY@gmail.com.
There is a flip side to this proposal. What if no one makes her a job
offer even with a $3,000 incentive to do so? That much money makes her a
free hire for a while. If no jobs are forthcoming it implies that there
is no work for anyone looking. Should that be the case we would have to
conclude that we are in very serious trouble. It would imply that
Wendy, and a few million others, are going fall off a cliff pretty soon.
I’ll let you know the results of this experiment.
»
- advertisements -
What Bruce is doing here is what the government should be doing on a national scale: incentivizing employers to hire in the form of (what amounts to) a tax credit. Instead all we get is bad news and uncertainty about how many new taxes (healthcare, cap-and-trade, VAT, cap-gains, income, corporate, fees, "reforms" etc. etc.) and red tape Obama is going to be able to cram down our throats before the mid-term and 2012 elections.
Actually there was a recent FICA incentive enacted in March but I think that is $1000 max credit after a year. Bruce just tripled that and put it up-front.
What would another UI extension amount to anyway? - $5000 a person on average? How about offering that to employers who hire instead? If it doesn't work it doesn't cost anything. It's what we call a win-win in business Mr. I-Don't-Even-Know-Anyone-Who's-Ever-Had-A-Private-Sector-Job President.
Let's see how long it takes Wendy to get a job. If this works out let's encourage others like Bruce to offer up 3...4...5000 bucks the same way Bruce is instead of making a hefty political campaign contribution. Now if that proves effective -employers actually take the cash and hire people- what you then have is empirical and politically leverage-able evidence on what actually works compared to what the government is doing (guerilla policy wonking! an accompanying reality TV show!).
Nothing can adaquately counter an administration hostile to (especially small) business but what an embarrasement to the president if the country is still poking along at 10%+ unemployment while 1000 real, verifiable jobs have been created (not "saved") off of Bruce's model and...you know, people started getting really loud about it...
Thanks Merc. It only took reading about 290 replies on this subject to finally find one that made some sense.
you could offer an employee to my employer for $5000/yr and they wouldn't take them, unless they fired someone to hire cheaper employee...they don't need any more employees...they need to cut expenses...they only sell so many widgets
It's not a silver bullet and maybe the incentive $ need to be higher but it certainly can't hurt and should make a difference in some cases.
agreed, some variations of this have been tried, and I doubt it is really that hard to model, we should at least consider, test it in a hard hit area etc...if any money is to be spent it should not be bailouts or mal-incentives...it should be things that help regular folks AND help economy...for this reason I think stimulus should simply be those things that will have biggest ROI for economy...jobs programs that actually result in additional good...I do think the alternative energy supports are good, as long as we make companies getting them compete with others etc...really, its govt using spending to provide social programs that also function as VCs for things that my have to long of a burn for private VCs. This may not be a net gain for govt, but it will help lots of people at much less cost than giving banks more reserves or bailing out old, big, bloated crony business...
I really don't believe that people that rail on the unemployed have any clue as to what all this globalization and outsourcing has done to this country and the job markets ... now its coupled with the financial crack up. I thought the prevalence "Made in China" stickers would give em a clue, apparently not.
Extend unemployment . . . Dont extend unemployment . . . it is really irrelevant, as it ignores the fundamental issue, which is, there are no real jobs because this country does not make anything any more. We convinced ourselves that we were smart enough to get other people to make everything, and we could sit around and grow wealthy. Might work on paper, but not in real life. The die was cast when we outsourced our manufacturing.
This America doesn't make anything anymore comment is just silly. Ever heard of Boeing Aircraft, Lockheed Martin, Intel, Texas Instruments, Merck, Amgen, Biogen, Dow Chemical, 3M? We just don't need as many manual laborers as does an Agrian society, so we created fake jobs in finance, law, insurance etc. The fake jobs went away along with the fake wealth.
Extend unemployment or extend an offer for work that is above unemployment for a good amount of time.
Once again, Rebel, you use the pejorative "we" --- not "we," kemosabe, but you financial douchmeisters.
Many of us honest types fought tooth and nail against it, but you lying douchies always seem to forget that.
Ask Virginia Postrel, libertarian extraordinaire, how many people took exception to her when that royal douchebag said exactly what you are prattling on about...
Sgt,
Wow, that was a pretty feisty response. For the record, I am not a financial douchmeister, or financial anything. I did not intend to attach any universal sense to the "we". Certainly I did not outsource jobs. I would probably be guilty in the sense that I shopped on price, to the detriment of local mom and pop shops. I would also be guilty of not being active enough in at least attempting to hold politicians accountable. While there is a lot of blame to be placed on financial douchmeisters, there is probably lots of blame for the rest of us who sort of enjoyed cheap walmart socks made with slave wages in china.
Sgt, sir, I agree with a lot of what you say, but please, play nice. The "we" can apply if we take in the fact that "we" allowed it to happen, even if "we" did not actually perform the deed. "We" are pussies. Even now, I don't see anyone bombing or burning down Wall Street or Congress. Not even useless protests, except by a very few. That is why "we" are in this boat. I fought with all my might, all my life. But with all the pussies, who were too dumb to know what was going on, or allowed people like myself to be ruined, or sold out, or ignored it so they wouldn't have to change their lifestyles, people like me took the lumps and failed. So, it wasn't just the financial douchmeisters.
And, Vendetta, what's your alternative?
You want to close the borders to imports, raise tariffs, prohibit consumers from buying what they want, kick out all "illegal" (like that phony term!) immigrants, support government minimum wages and prohibit companies from offshoring or outsourcing...
And watch your dollar go to five cents, inflation reach Argentinian levels and living standards plunge...
Wendy would never find a job under a planned socialist economy.
You're absolutely right Kredit-krap, with 90% of the US GDP made up of fantasy finance and war spending, there is definitely an economy in America....
Just joking, Krackhead.....you ignorant douchebags still can't handle arithmetic, huh???
Well not really.
Give Wendy the $6,000- then leverage it like a crooked Wallstreet bankster- 30 to l on paper but 100 to 1 off the books. Have Copter Ben sanitize her new "equity" 100 to 1 by lending her money at ZIRP, invest this new found wealth in assorted treasuries and she will never have to work again.
Forget Christian Charity, this is American "Capitalism" at work.
That's an excellent point, Ms. Wendy treats the loan (just a simple loan, not a multple leveraged loan, as usually is the case) as an asset, then issues notes of various ratings to be funneled through an ABCP conduit, and then.....
I wonder if Bruce and others have seen this piece
http://reason.com/blog/2010/07/10/reasontv-lessons-from-lebron-w
from Reason magazine. They've actually had a series of pieces on the subject of how to revitalize Cleveland. I think the inspiration was that Drew Carey, from Cleveland, is a serious libertarian. They looked at all the regulatory impediments to doing business in Cleveland and found it to be insane. They might choke off commerce in turn of the century New York with the thicket of regulations they have. But that's been their response to every successive downturn. We've just gotta micromanage this a little more.
No kidding.
Maybe Wendy is a superb cook; maybe she would like to sell $3.00 hot lunches to those still in work in downtown Cleveland. But she can't: the hoops and regulations she would have to jump through are no doubt horrendous, as in all of North America:
http://www.vancouversun.com/life/World+cuisine+coming+Vancouver+food+carts/3260142/story.html
800 "applied", and local government makes the decision to allow a miserable 17 people to engage in entrepreneurship...no doubt there are also business licenses, health checks, sanitation inspection certificates, hours of work laws, minimum wage for hired help, requirements for storage of equipment, requirements on the type of disposable utensils used, etc.,etc.
So much for North American micro-managing!
Speaking of the going back to school comment - there is so many unemployed/underemployed recent college grads now its crazy. I am sure student loan default rates will be going through the roof soon.
Not everyone should be going to college. It isn't right for many and it has almost become a barrier to a fungible workforce. Lets get manufacturing back in this country and not require a certification/degree of some sort for every freakin' job out there.
It is also time for universities to charge the useless degrees more than the necessary degrees (science and math related). A liberal arts degree should be 2x the amount of a hard science degree.
yeah, well guess what, student loans can NOT be eliminated by a bankruptcy filing. they are forever! the "got to go to college" routine was a masterful brainwashing to create debt slaves.
Excellent point, and let us never forget the reason why: because of massive multiple securitizations on those student loans and fees, by JP Morgan Chase, Citigroup, BofA, Goldman Sachs and Morgan Stanley....
Yeah, try explaining that to my wife. $40,000 in debt and she can't even get a real teaching job. Now she wants to spend (go into debt) another $8000 to get some nursing degree to pay off her teaching loans.
I'm not letting it happen. Everything I heard about how there's a big teaching shortage, greatest opportunity ever, blah blah blah...well that just turned out to be a fucking scam. Now they're saying the same thing about nursing. Next there will be a nursing glut. Just like grapes of wrath. you need 2000 people in the field? send out 10000 handbills. Youll have 5000 people show up and end up paying those 2000 you needed next to nothing.
Nurses aren't getting hired in Ohio. My sister had a great job working for a supplier to GM. When the Government took over it shut down her plant outside Dayton. Unemployment sent her to school since her job was specific and no longer being done in her state. She graduated from an LPN class 2 months ago. She has applied for work every single day and has now offered to take a lower level job that will pay her the SAME as unemployment. She should find out tomorrow if she got the job. She wants it badly because she is bored. Her husband works and they didn't have kids. She is going crazy and will work even if it means getting the same amount of $$$ as she is already getting for doing nothing. She will get a job because of her work ethic. A lot of people wouldn't get off the couch unless it was for more money.
I also talked to a guy that was a layed off IT professional working at my local drive thru. He said he was just getting too depressed at home doing nothing. He took a pay cut to work. A mother of my daughters friend is on unemployment from AT&T. She is working part time with special needs kids at the elementary school. Whatever she makes is deducted from her unemployment compensation but she'd rather be helping than doing nothing.
There are some great people in this country. None of the persons I just talked about are obese, lazy or criminals. It is time for us to take care of our own. We are on a boat that is taking water with our precious family in the middle of a storm. I feel bad that there are other countries drowning but if any of them come near my boat and risk capsizing it and killing my people I will have to shoot. I don't want to but I will always do what it takes to protect mine.
Nobody without a security clearance and/or a degree is getting hired in Dayton. GM closed, NCR left after exhausting their sweetheart deals with the University of Dayton, and lots of people are in a whole lot of wtf(including myself). Short of forcing them to prioritize to any unemployed (regardless of degree or most qualifications) for very long durations of time, I'm not sure how things would change. This is a region that once thought to respect those who worked for someone, now it's "security clearance, degree, or die sooner please".
Yes, if you're wondering, I am from that region, and (due to a long amount of unemployment) know all the wtfery that's happening towards the unemployed. At least the author of this article is willing to put his money where his mouth is.
I understand that boredom, but I'd rather defend what ground I do have and not make my situation worse.
You are correct. Luckily for her she drove to Dayton and lives closer to Cincinnati. She'll find a job, its just not going to pay a lot.
Yes, very nice offer from Mr. Krasting. I hope it works out. Maybe Wendy will help out someone else in the future because of the acts of kind stranger. The world needs more voluntary acts of kindness instead of people being forced to fork over their earnings by our government.
Heading to Cincinnatti is a very, very smart bet if for any private sector work. Looking for that option myself, even if I'm in the opposite situation (a long drive to Mason/Cinci) for IT-related work. Hopefully it works well for her.
For many of the unemployed, they've cut to the bone on many things. The only thing they get now is vitriol as if they were supposed to be swept under the rug.
Here is a letter I saved from the OC Register Handling Hard Times blog from earlier this year. It speaks for itself.
"Well.. were should I start? Long story short . I've was let go from my job in early February of 2008 of many years, and I started collecting unemployment in March o 2008. I have been looking for work since I was let go in 2008. It is now 2010 and I still haven't had any luck finding a stable job. I have been on countless interviews and have never gotten a call back from any employer with an offer of employment. Mind you I have also been faxing, sending out numerous resumes daily to all kinds of companies. And still to date I have not been successful in find work. It has been a complete struggle day in and day out to keep my sanity and dignity. My self esteem has become very low during these trying times. I have grown very weary in this situation of not being able to find work. I would love to be able to start my own business but all that takes money right? I have many bills and responsibilities as you all do as well that I must maintain and keep some sort of an income for. I am now in my 4 Tier of this unemployment program, which is my last tier before I am cut off. I have about 1 week left . And what am I going to do next for money? I honestly do not know. It seems like no one cares about any one. Especial those that are criticizing others for not working and on unemployment. I guess the saying should hold to be true . You never miss you're water until your well runs dry. For those that think we the unemployed are just milking the system....that isn't true. Some times things really take a lot longer to straighten out. And in this case that is what it is. People are hurting, struggling . depressed, left out. We need help and those that are in their last tier of unemployment need the continued help as well. I really believe that they need to extend the benefits again. Extra weeks need to be added."
I think extending them past 2 years would be over the top but I do think they need to keep the extensions going with how bad things are now but the costs should come from other reductions in the budget.
It wouldn't change the immediate fiscal problem but I've thought that rather than extending unemployment benefits it might be possible to allow people to draw on their Social Security benefits early and then have to repay them on a month for month basis when they reach retirement age, i.e. if a 40 year old person needed SS for say, 24 months now, their eligibility would be pushed back 24 months at age 66 or 67.
Theoretically, the government might even 'save' money as those availing themselves of this would likely be making more money at the end of their career and thus making higher social security contributions than they would be based on their income at the time of their job loss.
Wonder what Bruce as the resident Social Security analyst thinks of the idea?
Draw on SS funds... which funds would those be? ;)
in short term, just as costly as UI but interesting idea..
actually, very interesting idea. i like it.
actually, very interesting idea. i like it.
Wendy can thank the TEACHERS UNION for her situation. In many locations they are given a choice of: A)freeze wages and no layoffs or B)keep the contractual pay increases and have layoffs. In New York, New Jersey, and Connecticut the Teachers Union took choice B. It's a disgrace. The Teachers Union needs to be busted !!! Then there will be plenty of job offers for Wendy.
+100
If Wendy believes that illegal immigrants took her job, she can look for help here:
http://www.takeourjobs.org/
Otherwise, if she doesn't sleep at night, maybe that would be the equivalent of waking up and living within ones means (this goes for the f-ed up bankers as well - clawbacks please).
Unemployment benefits, during times like this are acceptable. It gives people an opportunity to adjust. Expecting unemployment benefits to go on indefinately is not. Additionally, there probably should be well-defined waiting periods until one is able to receive such benefits (1-3 months) to encourage people to live within their means.
Put a cork in it. Teaching jobs include background and criminal checks. I doubt the "illegals" are applying for those. She doesn't have any "means" left. I applaud Krastings for putting his money on the line for her. I hope the very best things happen from this wonderful act of humanity and generosity. You would never understand where he is coming from. Your loss.
Maybe Wendy should try to undercut this supposed "illegal" immigrant competition on price.
Worldwide, and in the West, it is CAPITAL that is in short supply: real, unencumbered SAVINGS. Labour is in vast oversupply everywhere.
And my bet is that soon we'll see people working or offering to work for less than the government-edict minimum wage, legality notwithstanding.
That's the way the world works.
"And my bet is that soon we'll see people working or offering to work for less than the government-edict minimum wage, legality notwithstanding."
Sorry, clown, before that ever happens the streets in America will be overflowing with blood......you don't get out much, huh????
Er...by the way, has anyone asked why Wendy finds herself in the unfortunate position of having to sell her labour?
There's something wrong with a society in which everyone must ask others to buy their labour. People should be free to set up and establish themselves, free of taxation and regulation of any kind, in any business they see fit.
Or...Why not lend Wendy $50,000 and have her play the markets with it? She could become a rentier speculator like the rest of us, a la Bernanke's wishes...only problem is that she has no creditworthiness...
Er...by the way, has anyone asked why Wendy finds herself in the unfortunate position of having to sell her labour?
There's something wrong with a society in which everyone must ask others to buy their labour.
Ok, I'll bite. What else does a person have to sell? Unless they have inheritance/trust fund there seems no other way to proceed through society. Please enlighten me.
In the spirit of livening up this boring thread!
Yeah, I like this idea. Set her up with an IB account and let her become a daytrader -- at night, she can supplement her winnings by pole-dancing. Next, she sets a trader advisory website: HotTipsbyHotMama, etc., etc.
What a boring, sententious thread this is . . .
Its hard not to be moved by the reality many of the unemployed are facing as their UI runs out. That doesn't mean more Keynesian nonsense is going to help them out. Funding unemployment insurance extentions is not an unreasonable demand.
Bruce's offer is generous but isn't really a good idea. If Wendy were to get a genuine job that she deserved to get then Bruce's inducements were not necessary. If she gets one because of the inducements then it could be at someone else expense. Someone who deserved the job more and whose personal circumstances could be just as if not more desperate than Wendy's.
If we want to help the unemployed there would be no faster and more effective method than Congress to require all employers to use the E-Verify system to establish the right of their employees to work in the US. Those who could not document their right to work would be terminated and those jobs would then be open to legal US residents and citizens. It will cause hardship on the illegals of course but we have duty to our own people not them.
Bruce, sorry sucker, you been had. You fell for the 'Victim Speech,' a Democrat's Hallmark.
I know some folks that are borrowing about $35,000 per year to send their daughter to a $50,000/year school. She wants to be a Social Worker making maybe $30,000 a year, around here. Granted she is not packing the gear brain wise but the parents are squandering their future, they are going to pay with their social security.
Bruce, give the money to a whore on the street trying to support her kids. She is putting her ass on the line, not a suck up looking for a government job.
+1000
Wendy needs to keep her legs shut and get a grip. If she can't make it, too bad. Shit happens. Here's an idea Wendy: Buy an insurance policy, wait two years and then off yourself. But make sure you have trust worthy people to take care of your kids. No? Forget the insurance and abandon the yelps. Social services will find a nice family to take care of them and feed them McDonalds.
What or who hurt you so much that you are so mean-spirited and driven to hide all that hurt with your anger? Be careful, that tiny little heart you've got left could get totally snuffed out by a few more hateful, misogynist thoughts like that...
by the way, she didn't get pregnant by herself, assuming the father of her children is still alive, healthy, is he freaking out about how he is going to take care of the kids or is he just gone?
Bruce, nice offer, hope it works for Wendy...i'm not in OH but know someone there that is fairly high up at company, will drop them a line.
I do believe we are our brother keepers. Of course, we all know people that are just users and spoiling such brats is not good...but in this economy, the percentages are just sooo much higher that good hard working, disciplined people are going to be just plain short. Sure, some people with exceptional creativity, pluck, connections etc...can make it through unemployment or dying small business, but with so many cracks, just a regular, decent person has a hard time not falling thru.
My mom said there was a guy at her church that did accounting and some computer programming stuff. Kind of an odd duck personality, but from reports of the church office staff, very competent in helping them as a volunteer and a former co-worker vouches well for him also. He has been out of a job for over a year and someone found him in the pews crying after everyone had left church...he just kept saying and crying, "I just want a job....."
Thank you for checking.
bk