I was taking a break from my normal online activities this morning and decided to visit a couple news sites just to see what was going on here in the US and around the world. Well just as I expected, I came across a few headlines talking about the high unemployment rate (over 7%) and reminding us that since the recession started job losses have been large and widespread across all major industries. I will be the first one to agree that the current situation is anything but rosy. I will also be the first one to point out that we maybe need to step out of our comfort zones.
I remember reading somewhere on the Net that the current wave of frugality is, in a way, hurting the economy because people are spending way less than they used to. This, in turn, causes businesses to make less money and lay off people. This way of seeing things only looks at part of the picture. While laying people off is one of the first cost-reducing measures, business also look at their operating habits to spot where they can reduces costs and/or be more productive. Being more productive means they will be able to offer their goods and services at lower prices because they're being more competitive. And lower prices are just what their customers will be looking for.
Rising unemployment also breeds competition among employees, which is something that is rarely thought about when the concept of competition is mentioned. High unemployment rates makes people more aware that they have to perform to keep their jobs, and they tend to be more productive. If there have been layoffs, a reduced staff ends up doing the same amount of work; if there have been no layoffs, the same staff does more work. Finally, depending on the company, workers agree to pay freezes or even pay cuts to keep their jobs, which helps companies' bottom lines.
Given the constant coverage that is bestowed upon the current unemployment rate in the country, you might think that ours is higher that that of other countries of comparable economic stature. Not so! In several of the most developed European Union countries, the unemployment rate has been at or around 8% for many years. The United States probably has come to a point where as a country it must realize that the past ultra-low unemployment rate (known as full employment) was exceptional and move on to less glamorous statistics.
All this is merely a prelude to my main point, which is the following. While the country's average unemployment rate is 7.2%, Michigan has the highest rate at a little over 10%, and Wyoming has the lowest rate, at a little over 3%. Why the difference? Michigan's source of employment is primarily manufacturing and big factories. Wyoming is mostly a state of self-employed dairy farmers. The solution to our current economic crisis will probably come through the realization that self-employment is something we should get back into our collective minds as a viable option.
That is not to say that we should all turn into farmers in order to solve the deepest financial crisis since the Great Depression. The idea is that we should stop relying on others to provide us with jobs. Wyoming's unemployment rate is the lowest of the country because it's hard to get fired when you're your own boss. If you can find something you're good at and can make money from, consider that the world is turning into one big village, and that the Internet allows you to do business anywhere in the world if you're so inclined. There have seldom been better times to consider being in business for yourself. - 21151
I remember reading somewhere on the Net that the current wave of frugality is, in a way, hurting the economy because people are spending way less than they used to. This, in turn, causes businesses to make less money and lay off people. This way of seeing things only looks at part of the picture. While laying people off is one of the first cost-reducing measures, business also look at their operating habits to spot where they can reduces costs and/or be more productive. Being more productive means they will be able to offer their goods and services at lower prices because they're being more competitive. And lower prices are just what their customers will be looking for.
Rising unemployment also breeds competition among employees, which is something that is rarely thought about when the concept of competition is mentioned. High unemployment rates makes people more aware that they have to perform to keep their jobs, and they tend to be more productive. If there have been layoffs, a reduced staff ends up doing the same amount of work; if there have been no layoffs, the same staff does more work. Finally, depending on the company, workers agree to pay freezes or even pay cuts to keep their jobs, which helps companies' bottom lines.
Given the constant coverage that is bestowed upon the current unemployment rate in the country, you might think that ours is higher that that of other countries of comparable economic stature. Not so! In several of the most developed European Union countries, the unemployment rate has been at or around 8% for many years. The United States probably has come to a point where as a country it must realize that the past ultra-low unemployment rate (known as full employment) was exceptional and move on to less glamorous statistics.
All this is merely a prelude to my main point, which is the following. While the country's average unemployment rate is 7.2%, Michigan has the highest rate at a little over 10%, and Wyoming has the lowest rate, at a little over 3%. Why the difference? Michigan's source of employment is primarily manufacturing and big factories. Wyoming is mostly a state of self-employed dairy farmers. The solution to our current economic crisis will probably come through the realization that self-employment is something we should get back into our collective minds as a viable option.
That is not to say that we should all turn into farmers in order to solve the deepest financial crisis since the Great Depression. The idea is that we should stop relying on others to provide us with jobs. Wyoming's unemployment rate is the lowest of the country because it's hard to get fired when you're your own boss. If you can find something you're good at and can make money from, consider that the world is turning into one big village, and that the Internet allows you to do business anywhere in the world if you're so inclined. There have seldom been better times to consider being in business for yourself. - 21151
About the Author:
If you've been laid off, make sure you read up on getting unemployment insurance benefits insurance benefits by visiting my financial tips blog.
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