What Obama's Job Stimulus Package Lacks
President Obama is basically a CEO of a huge company, in this case, America. The company has staggering problems that no one person could ever solve. As a CEO, he appoints members of his Cabinet and their subordinates to follow his broad brush stroke plan that he envisions and prays its details to help the poor or unemployed actually are carried out and not buried in minute details.
The problem remains that it does. Let's take unemployment. On average in the US it is 10%, which translates into millions that are receiving unemployment money. However, it does not include those millions that no longer receive it because their entitlement is used. It does not include those unemployed for over nine months. Most unemployment benefits run out within six months of the filing date. The benefits can be extended BUT not everyone receives them because the formula used is also tied to how much money was made during the period of time the claim is based on. Thus, a person who worked for $15 hr full time very well may not get extended or even the full amount of benefits a person who earned $40 hr. The more money earned during the claim period, the more likely you will receive the maximum amount of unemployment benefit and the more likely you will get the benefits extended when the original claim runs out.
Obama should have a few plans that target specific groups of unemployed based upon the length of their unemployment. This could easily be ascertained from every state's unemployment records. The first group would be the chronically unemployed, those out of work for over a year. The next target group is those out of work from six to twelve months. Once those numbers are determined within each state, zero in where those numbers prevail within the state. Target money for those specific areas with very open guidelines about who has job priority. The intake form for those in the first group should be brief. Ascertain their skills and education, how long they have been out of work, For those in this category, asking questions or having suspicions about why they cannot find a job is futile. Simply have them start working in a position that allow thier skills to be maintained or enhanced.
The one thing Obama can't see is the suspicion upon those who have been out of work for a year or more. Employers have a mental block about this dilemma and immediately think the worse of the applicant, like, "they must be a problem worker", "they must have been fired" "what have they been doing for a year", "they are too old", 'how can they not work for a year", "maybe they are doing illegal activities". Whatever suspicions they have influence their decision when compared to another that has been out of work only a few months.It is like night and day. That is why Obama needs a job program that simply does not care about the reasons why the chronically unemployed are unemployed. Create a stimulus with real jobs and match the skills to them. Sign them up and work. The basic fact is that the longer one is unemployed the more difficult for those to get any sort of employment because of the time gap. This is in addition to the usual skills, age, location and experience issues that are involved. For them, time is against them in their skills, as their expertise in areas become wasted from non-use or need to use them. Convincing employers otherwise becomes almost insurmountable without a lucky break from understanding employer.
Obama instead is simply sending a job stimulus package to a sector for implementation which ends up being a bureaucratic mess that few unemployed persons benefit from. The subordinate agencies create too many qualifying criteria, too much red tape, which increases the time of simply getting approved.
Those unemployed for six months or more continue to be. Continue to make the national unemployment rate high. Obama needs to target this group. He isn't in most cases.