One of the first things I learned in outplacement counseling was to develop and cultivate a network.  This was a philosophy that I embraced back in 1996 when I lost my previous job to downsizing and outsourcing.  As a result I have contacts in various industries.

A few days ago I received a call from one of my contacts.  His expertise is the area of finance.  We had a very interesting conversation and I felt it would be a great idea to write about it for this submission:

 A View From Finance     

   It was midweek when I received a call from one of my contacts.  We have always had interesting conversations about the state of the US.  We have kept a running dialogue ever since the recession began in 2007.  When my friend called, I was glad to hear from him.  The conversation went something like this:

Mark:  Hi Howard, how is the family doing?

Howard:  Hi Mark, good to hear from you.  The family is doing fine.  As you know, last year I had a really tough time finding a job and spent most of 2009 out of work.  This year, my daughter is having a very tough time finding a job.  She is new to the job market. It is tough enough for experienced individuals to find work; however it is even harder on my daughter as she is still new to the job market.

Mark:  Well tell her that I wish her luck, it is tough out there.  By the way, are you still writing for 405?

Howard:  Yes I still write for 405.  Many of my former co-workers are still struggling to find employment and they look forward to my writings.  Speaking of which, I hope you don’t mind if I pose a few questions.  I think your view from the world of finance might be interesting.

Mark:  Go ahead. I’d love to share my opinions.

Howard:  Okay, thanks. Here is my first question:  When do you think the recession will end?

Mark:  Howard, I cannot give you a clear answer on that issue.  Our economy thrives on companies and individuals spending money for goods and services.  It is that flow of capital which fuels our economy. Putting it simply, when people start spending money, we will see the recession come to an end.

Howard:  It sounds like we have a long way to go before we see an end to this recession, based on what you are telling me.  If people are afraid they are going to lose their jobs, they are going to save money, not spend it; and here is another thing that confuses me.  If the government knows that people spending money will help to end the recession, why is the government so hesitant to extend Unemployment Insurance?

Mark:  For one, the federal government has already spent close to a trillion dollars in an effort to end the recession.  The Government has a lot of resources, but they are not infinite, and the taxpayers will end up paying for this mess in the form of higher taxes. Then you have politicians who vote against the benefits extension because they feel it is perpetuating unemployment.

Howard:  Isn’t the government making a huge mistake if they do not extend Unemployment Benefits?

Mark:  I feel that the government is making a huge mistake if they do not extend benefits; while extending unemployment is not a long term solution, it is absolutely necessary in the short term as it is helping people make ends meet.  It is also preventing many from defaulting on loans and mortgages.  In many cases the government does not spend its money wisely.  While I feel it was necessary to save some of our larger financial institutions, the government has not done enough for the average American.

Howard:  What do you think government can do to help?

Mark:  Basically, the government needs to put an effective plan into place that puts more people to work.  While the Federal Government has initiated some construction projects, it needs to look past construction.  We need an effective plan to re-train people who worked in industries that have relocated to foreign countries.

Howard:  If you had a chance to speak before Congress, what would you tell them?

Mark:  I would tell them that the number one priority is to restore confidence in America.  People who are afraid of losing their jobs, as well as those who are unemployed are not going to purchase goods and services.  This recession will end when people are no longer afraid of losing their jobs; when we find a long term solution to the current rate of unemployment.  As a country, we need to see a significant decrease in the unemployment rate. Those who are unemployed should not have to spend months, or years looking for a new job.

 Howard:  Thanks for your time Mark. The recession is hurting all of us, especially those of us who are in between jobs.  Although it often seems a tiring and fruitless hunt, I urge all of you to keep hunting and I hope you will find work and peace in your lives.

I wish all of you Good Hunting.

-By Howard K. Young, Contributing Writer & Member of The 405 Club.

View all of Howard’s posts here.