Culture of Change

Last winter the markets collapsed. There were screams and tears and calls for hangings. So we went into debt, deeply, in an effort to stop the bleeding. Anything to fix it!

The second quarter of 2009 saw a rally in the stock market, the conviction of Bernie Madoff, and an auto industry bailout. Hope was the lead story on the nightly news.

But now what? The story of hope is fading, and behind it is the reality of less work and less money for American workers. Despite massive amounts of bailout money being borrowed against future taxes, the unemployment rate climbs. And some say we have a ways to go, from our current 9.5% to a staggering 14%. Could it really get 50% worse? Unfortunately, it could, and very well might.

As the market rally stalls out U.S. companies are reminded that recessions can last a very long time. Managers are being told to stay lean and reduce head counts, as payroll is always one of the biggest expenses a company has. State and local governments, facing huge revenue shortfalls, and are being forced to layoff teachers, agency employees, and support staff. Charitable organizations, facing lower rates of donations, are also laying off paid staff. With all of this bleeding, how can unemployment not go up?

At the point it is vital that we admit that the first stimulus package did nothing to slow job loss, it simply protected large investors and big corporate shareholders. A second package can't be expected to do any better, and I can't emphasize this enough - WE CAN'T AFFORD MORE DEBT!!