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December 24, 2015

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TO HELL WITH GOOD JOBS--we are at full employment. Almost as if on cue from the White House: the press, Wall Street and even the Republicans seem to believe if everyone has a job no matter what it is composed of then America is in good shape. In India 170 Million people make less than $1.90 a DAY. Compare that to China's working class who make $15.43 a DAY. America's lowest paid workers are calling out for $15 an HOUR. And, we wonder when the jobs will come back. Trump declares as soon as he is elected. APPLE and GE build some of the most sophisticated products in the world --over there. Those jobs are not coming back.

The worry for China is that they can see the tea leaves clearly from the problems of Japan. Their working class jobs are going to India, Mexico, South America, etc as the world economy spreads wealth out in ever decreasing waves like a pond dissipates the waves from a pebble. And, that wave begins in America and Europe. It was partly caused by the rebuilding of the Japanese Empire as we capitalized our most fierce economic competitor. Note that now the German economic machine dominates the European economic union. Commodities, as we are seeing in oil, have a very low margin and the spoils go to the least cost supplier. In the case of oil the Saudi's at around $10/barrel. In labor that is mostly a matter of which country can ignore environmental factors, can ignore healthcare issues and can suppress the political leverage of the workers. Communists do it best. Monarchies do it well. Socialists are good at it. Capitalists do what they do best: search for the most competitive and efficient places to deploy their capital and compete. So it goes.

And, so now that our poorest class are employed in lower paying jobs, contract jobs with no benefits, jobs designed to employ people at less than 40 hour weeks requiring multiple jobs to earn a living the campaign promises of 2008 of the creation of "good , Green middle class jobs" has long been forgotten. America is resigned to trying to make things better by leveling the playing field. Adding more people to food stamps. Subsidized healthcare options, loans that trap kids into a college education as if everyone needs one. (England has the highest college education class in the world with around 55% degreed. Unemployment in that class is around 22%.) In America you only need to know how to fix a machine and understand computers to earn $120,000 a year. There are nearly 3 million open jobs. A high school degree will get you $78,000 a year as an elevator installer. No college degree is necessary to get you $115,000 as an air traffic controller. A psychology, business or political science degree will get you some interviews as a telephone solicitor or insurance sales person or a mortgage lending processor. Our Education system has no focus on the opportunities that exist in a service economy.

Let's be realistic: labor jobs that make things are gone overseas. And, that is lucky for us. Do we want to compete for $2 a day jobs? We need to focus on SERVICE jobs where 70% of America's job opportunities are. Plumbers make $30/hour. Accountants make $50 an hour. Nurses make $40 an hour. UPS drivers make $35 an hour. And, where do most of those jobs come from? Small businesses. Small businesses don't ship many jobs out of the country and yet they employ about 78% of Americans. Meanwhile Apple our best company has $1 Trillion dollars trapped overseas and begs for tax reform. GE ships their jobs overseas every year--even the production of medical equipment. And their CEO was the head of the President's job creation committee.

So how does America create great jobs? Focus on services and small businesses. In 42 years I have created thousands of jobs. Five companies. Sold more than $300,000,000 in services. Placed candidates in jobs paying nearly $1 Billion in salaries. Nearly all of them in SERVICES and SMALL BUSINESSES. I've made one placement with IBM. None with APPLE. Yet placed thousand of IT people. And, thousands of engineers. Small businesses need help not in selling or servicing but rather in dealing with all the taxes,rules and regulations thrown at them in the political grab for votes. In finding someone besides the factoring companies and credit card companies who will give them a line of credit.

So now that our children all have a couple jobs. That their household income has dropped for $55k to $52k in 8 years. That they are saddled with college debt they cannot service. All is well America. WE ARE AT FULL EMPLOYMENT and none the better for it.

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