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The Story of a Generation: We Are the Unhireables

We are the Unhireables. We went to college. We got good grades. We stayed out of trouble. We interned. We applied. We interviewed. We did everything we were supposed to do. And no one hired us.

This is the story of a generation. My generation. We’re in our 20s and early 30s. They call us the Millennials. But lately it seems a more accurate name would be the Unhireables.

The previous generation didn’t have this problem. In the 1990s, unemployment was low. The job market was strong. Now, I hear people my age say things like, “What job market?”

In 2000, the United States had the lowest unemployment rate for 25-to-34-year-olds in the industrialized world. Now, we have one of the highest rates.

Last month marked the 53rd month in a row that the unemployment rate was in double digits for 18-to-29-year-olds. It fell from 11.7 percent to 11.1 percent, but mostly for the wrong reasons.

The unemployment numbers don’t tell the real story. They don’t count someone as “unemployed” if they’ve stopped looking for a job — for example, out of frustration after too many failed attempts — and that eliminates a lot of unemployed Americans who desperately need a job. Fewer people are job-hunting today than they were a couple years ago, and we can’t blame it on the aging Baby Boomers because they’re actually trying to work more to make up for the savings they lost during the recession.

Here’s a more relevant statistic: Before the recession, over 63 percent of the American population had a job. During the recession, it plummeted below 59 percent, and it’s flatlined ever since. In the last four years, the economy has grown, but the job market has stayed exactly the same.

For the unemployed, there has been no recovery. The recession never ended. It has lasted six years — and counting!

There is no parallel for this in postwar history. My generation is alone in this experience. No other living generation has graduated into a job market that has been so bad for so long.

I’ve heard it said that it’s all a matter of education. College graduates have a lower unemployment rate than the less educated, so isn’t the real problem a lack of skills, not a lack of jobs?

If you’re asking this question, then you haven’t talked to many young college graduates. Over half of bachelor’s degree-holders under 25 are unemployed or underemployed — meaning they’re working part-time when they want to work full-time. Half of all employed college graduates are working in jobs that don’t require a college degree, and over a third of them are working in jobs that only require a high school diploma.

Even graduate school isn’t the meal ticket it used to be. Only about half of all law school graduates are working in full-time legal jobs.

And the longer they stay unemployed, the less likely they are to get a good job. More job openings tend to bring down the unemployment rate, but not the long-term unemployment rate. In fact, one recent experiment found that the long-term unemployed got fewer callbacks from potential employers even if they had far superior qualifications than the other job candidates. As Paul Krugman recently put it, we are “creating a permanent class of jobless Americans.”

But it’s worse than that: We are creating a permanent generation of jobless Americans — a generation whose earning potential will always be stunted by the bad luck they had of graduating at the wrong time, a time when their nation abandoned them, ignored their plight, pretended they didn’t exist, blamed them for a crisis that they didn’t cause.

It must have been nice to live in an economy where people were rewarded for sacrificing and studying and working hard. But that was before our time. And so, we press on: searching, stressing, toiling, waiting. This is our burden. This is our story. We are the Unhireables.

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This op-ed was published in today’s South Florida Sun-Sentinel.

Posted in From the Editor's Desk.


Quote of the Day: Philip Weiss

Does anyone think that intimately coordinating American policy on Syria with Israel is going to build the credibility of whatever regime replaces Assad?

– Philip Weiss (Mondoweiss.net)

Posted in Witty Ditty.


Americans Still Want Renewable Energy — and They’re Going to Get It

James Gaddy knows manure. Chicken manure, to be exact. He’s spent years working with it. That may not sound like much fun to you and me, but Gaddy is on a mission to power the earth — and, in the process, save it.

Specifically, Gaddy has figured out a way to produce ethanol from the bacteria in chicken manure. And it’s cellulosic ethanol, not the corn-based kind that siphons land in Iowa, jacks up the price of food, and results in almost as much greenhouse gas emissions as gasoline. No, this stuff is the real deal. It dramatically reduces greenhouse gases, and it comes from something we were going to throw away anyway.

I used to write about cellulosic ethanol, back when I first starting writing op-ed columns over six years ago. That was before the Great Recession — before we all became obsessed with the economy. People were more concerned about environmental issues then.

The most popular policy I proposed was a Manhattan Project for the 21st century: a national investment in a range of alternative energy technologies that would wean us off foreign oil and dramatically increase the efficiency of our energy use. It would be a public-private partnership. The free market would lead the way, creating and selling the products, but they would be supported by startup capital and loan guarantees from the federal government, the only entity big enough to absorb the upfront costs for a new national infrastructure, as it did in the days of Eisenhower and Roosevelt and even Jefferson.

People loved that idea. They saw it as this generation’s “we choose to go to the moon” moment. When the economy started to weaken in 2007, they liked the idea even more. Now, it wasn’t just investing in the future; it was creating jobs for today.

And it wasn’t just Democrats. The majority of my readers were Republicans, and they thought it was a great way to distance ourselves from Middle Eastern oil producers without a lot of government regulation.

According to a survey released earlier this week, their opinion hasn’t changed. The Center for Climate Change Communication at George Mason University polled Republicans and independents who vote Republican, and they found that 77 percent think we should use more renewable energy. A majority of them believe this so strongly that they think it’s worth the cost of any government intervention that may be necessary to achieve that goal. In fact, when they read the 2012 Republican Party platform, which doesn’t mention climate change but does celebrate coal and oil, two-thirds of them disagreed with it.

So I think it’s fair to say that Americans of both parties still want a large, Manhattan-style investment in renewable energy. Which brings me back to James Gaddy.

In Vero Beach, Florida, the Swiss company INEOS is building a biorefinery that will use Gaddy’s research to convert waste into eight million gallons of ethanol every year, all the while powering itself and creating electricity for others to use. This project would not have happened without a $50 million grant from the federal government, one of many grants included in the 2009 stimulus that has become so unpopular.

In fact, as investigative reporter Michael Grunwald documents in exhaustive detail in his book The New New Deal, the 2009 stimulus was “the biggest and most transformative energy bill in U.S. history,” funding everything from electric vehicles to high-speed rail, from biorefineries to wind farms, from solar panel manufacturing to home weatherization.

As it turned out, we got our Manhattan Project, and no one noticed. The Obama administration didn’t sell it, the media didn’t report it, and the Republicans in Congress did everything in their power to hide it and discredit it.

It wasn’t enough, but it was a start — and if the George Mason poll is any indication, it won’t be the end. The enemies of progress can stand in our way, but they can’t hold us back.

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This op-ed was published in yesterday’s South Florida Sun-Sentinel.

Posted in From the Editor's Desk.


How We Stopped Investing in the Future: A Florida Case Study

In June 2009, ten Florida Congressmen sent a letter to the Department of Transportation, requesting over $2 billion from the federal government. They wanted to build a high-speed rail line, shuttling passengers from Tampa to Orlando and eventually Miami in only two hours. The money was supposed to come from the American Recovery and Reinvestment Act, the $787 billion “stimulus” bill that newly-elected President Barack Obama signed in February of that year.

Of the ten Florida Congressmen, three were Republicans, and all three had voted against the stimulus: Lincoln Diaz-Balart, Mario Diaz-Balart, and Adam Putnam.

This kind of about-face wasn’t unusual. Many Republicans were begging for a piece of the stimulus after they had tried to kill it in Congress. Even party leaders like Paul Ryan and Eric Cantor got in on the action.

John Boehner defended this contradiction by saying that the stimulus would fund “shovel-ready projects that will create much-needed jobs.” Only a few months earlier, he had been saying the exact opposite — and relentlessly trashing anyone who dared to disagree with him.

The Tampa-Orlando rail line really did fit Boehner’s definition. It was shovel-ready because almost all the land and permits were already lined up, and according to the U.S. Conference of Mayors, it would create 27,000 jobs.

Moreover, it was good fiscal policy. According to two separate reports, the project would produce an annual surplus of $31 million to $45 million by 2026 — and that didn’t include the much more profitable connection to Miami that was likely to follow.

And it was good environmental policy. High-speed rail emits far less greenhouse gas than cars, especially in densely populated regions like central and southeastern Florida, which is why overflowing cities in China, Europe, and Japan have surged so far ahead of us in this vehicle of the future. It saves time, money, and pollution. Unsurprisingly, it’s very popular.

Fifty years ago, this would have been a no-brainer. In the 1950s and the 1960s, politicians were dedicated to investing in new technology and staying one step ahead of the Soviet Union. It’s no coincidence that economic growth was faster and more widespread in those days.

Back then, the federal government spent 2.6 percent of the nation’s income on nonmilitary investment. In the last twenty years, it has averaged 1.8 percent per year. That difference of 0.8 percent may not seem like a lot, but it adds up to trillions and trillions of dollars that could have gone into research and development, education, and new infrastructure — and, if previous investments are any indication, would have yielded benefits many times higher than the costs.

As economist Eugene Steuerle put it, “We have a budget for a declining nation.”

On January 28, 2010, the White House granted Florida’s request. By December, the Department of Transportation had allocated $2.4 billion against a cost of $2.65 billion, and they promised to cover any cost overruns. Had Florida accepted the money, its workers would be laying rail for the Sunshine State bullet train at this very moment.

Instead, Governor Rick Scott rejected the deal, citing cost concerns that didn’t make much sense since the feds were on the hook for any losses.

Thus did the dreams of high-speed rail die in Florida. Thus do many dreams of the future die in the modern political arena.

In Tampa, there’s a street called Bayshore Boulevard. It’s the longest continuous sidewalk in the world. It’s a beautiful walk, with a balustrade that overlooks the water below. It was built in the 1930s by the Public Works Administration, part of the federal government’s response to the Great Depression. It’s just one of many breathtaking feats of construction that dot this great land of ours, each a reminder that, as Transportation Secretary Ray LaHood said during the high-speed rail fiasco, “We still know how to do big things in this country.”

I’d like to think that’s true. I’d like to think we still care about the future. I’d like to think we can build a better tomorrow. I only wish Governor Scott and his fellow ideologues felt the same way.

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This op-ed was published in today’s South Florida Sun-Sentinel.

Posted in From the Editor's Desk.

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We Don’t Have a Government Spending Problem. We Have a Health Care Problem.

Nobody’s happy about the sequester, the government spending cuts that took effect a few days ago, but most people think it was a necessary evil.

Evil? Maybe. Necessary? Absolutely not.

In June 2011, before Congress passed the Budget Control Act, the Congressional Budget Office released its annual “Long-Term Budget Outlook.” This is the best nonpartisan projection we have of what the federal budget would look like without the sequester.

The CBO considered two possibilities.

First, what would the budget look like if Congress did absolutely nothing? The Bush tax cuts would expire as scheduled, Obamacare would take effect, and Medicare payments to doctors would remain at current rates. They called this the “Extended-Baseline Scenario.”

Second, what if Congress stopped all those things from happening? They extended the Bush tax cuts permanently, repealed Obamacare, and raised Medicare’s payment rates for doctors every year. They called this the “Alternative Fiscal Scenario.”

The difference is stunning. In the Extended-Baseline Scenario, the government’s debt never increases. Relative to the size of the economy, it’s the same in 2033 as it was in 2013. Meanwhile, in the Alternative Fiscal Scenario, it skyrockets. By 2033, it’s double what it was in 2013.

The Alternative Fiscal Scenario is what scared legislators into passing the Budget Control Act. They decided to slash government spending across-the-board by over $2 trillion over the next decade in order to avoid a massive increase in debt.

But why were they looking at the Alternative Fiscal Scenario? After all, the Extended-Baseline Scenario showed that the debt problem disappeared if Congress simply did nothing. Why didn’t they just…do nothing?

Well, if they did nothing, taxes would go up, and doctors’ payments wouldn’t. The politics speaks for itself.

Instead of doing nothing, Congress made 84 percent of the Bush tax cuts permanent at the beginning of this year, and of course, doctors’ payments continue to rise.

And that’s why they needed the sequester to rein in rising debt.

But that doesn’t explain why the sequester was an across-the-board cut in government spending when, according to the CBO, we don’t have an across-the-board spending problem.

Let’s look at the 2011 Budget Outlook one more time.

In the Alternative Fiscal Scenario, it’s true that spending increases dramatically — from 24.1 percent of our nation’s income in 2011 to 33.9 percent in 2035. But it’s not across-the-board. In fact, if you exclude health care programs and interest payments, federal spending actually decreases from 17.1 percent in 2011 to 14.6 percent in 2035!

In other words, we don’t have a spending problem. We have a health care problem!

If we had the health care costs of the average industrialized country – which has a higher life expectancy than us, by the way – we’d save over $2.5 trillion over the next decade, far more than the sequester.

And yet, looking at these numbers, our legislators decided to slash government programs across-the-board, the vast majority of which nothing to do with the problem. They chose to kick 70,000 kids out of Head Start; eliminate funding for 1.2 million disadvantaged students; serve 4 million fewer Meals on Wheels; eliminate nutrition assistance for 600,000 women and children; kick 120,000 families out of low-income housing; kick 100,000 homeless people out of shelters; conduct 2,100 fewer food inspections; conduct 1,200 fewer workplace safety inspections; treat 373,000 fewer mentally ill Americans; employ 1,000 fewer federal law enforcement agents; prosecute 1,000 fewer criminal cases; issue 1,000 fewer science research grants; guarantee $540 million less in loans to small businesses; conduct 424,000 fewer HIV tests; and treat 7,400 fewer AIDS patients. And that’s only this year, when less than 10 percent of the sequester will kick in.

All because they didn’t want to deal with the real problem.

Last month, the CBO published a new Budget Outlook. Including the effects of the sequester, it shows debt declining for the next few years, and then in 2019 it starts to rise again. That’s the dirty little secret that Congress won’t tell you: Even $2 trillion in spending cuts can’t stop the rise in debt…because spending simply isn’t the problem.

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This op-ed was published in today’s South Florida Sun-Sentinel.

Posted in From the Editor's Desk.

Tagged with , , , , , , , , , , , , , , , , , .