The Job Interview

I started and helped operate a profitable major employee-contracting business for 17 years. The work varied from ordinary clerical to nurses and physicians. 

Lots of suggestions get thrown about on the important subject of securing a job. Let me tell you one that makes more sense than others I see being professed in the media as the best.

Try this job interview technique with a prospective employer, after the interview: Now that we have had our discussion, do you have any reservations about me that you would like to have me explain or answer?

That helps get into any problems that may stymie your efforts. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

Why Not Some Moratorium on All Federal Regulations?

An important suggestion that the vast majority of Americans are not thinking of: There should be a year’s moratorium or until the next presidential election, on all new federal regulations until an independent audit can be arranged to evaluate what we now have.

I can guarantee the U.S. economy and political system will not spin out of control. But we will get an idea of duplications and such inanities as spilled milk on farms being treated as “oil spills.”

And also, an audit of the massive Federal Register to reduce its ridiculous size.(See the Earl J Weinreb NewsHole® comments and @BusinessNewshole.)

State Budgets Affected By Politics

The public marvels at Wall Street’s salaries and bonuses, while government salaries get slight attention.

While we know about Uncle Sam’s spending these days, state and local outlays are beginning to get commentary because severe budget problems are a major source of problems for all states and cities as well.

I am referring to exorbitant pensions held by millions of active and retired state and local public employees. These include city managers, teachers, cops. garbage collectors, guards. They represent at least three quarters of public employees who have what is called defined-benefit retirement plans.

They have the ability, unfortunately, to organize voters and thus control politicians who keep adding to taxpayer burdens until there are not enough taxpayer funds to go around for the feeding frenzy to persist. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

The Media’s Huge Impact on the Economy

 
The media has a huge impact on the economy because of its influence in politics. Unfortunately, research and just pure independent observation easily show bias and slant, so that impact can be dangerous to the economy and, thus, the country.

The media’s impact, moreover, exceeds its inherent ability, being composed of individuals who often are not truly fit to be in their influential positions.

The average citizen is thus imbued with one, overriding economic theory, a form of Keynesian, which has been refuted over many decades of experience.  (See the Earl J. Weinreb NewsHole® comments.)

The Inflationary Economy

A 2003 report by the Federal Reserve calculated the effects of government debt and its impact on long-term interest rates. It was done before the current deep recession and weak “recovery” and the efforts of the Administration.

The report concluded: "A percentage point increase in the projected deficit-to-GDP ratio raises the 10-year bond rate expected to prevail five years into the future by 20 to 40 basis points. Similarly, a percentage point increase in the projected debt-to-GDP ratio raises future interest rates by about 4 to 5 basis points."

In other words, the effect of inflation in the form of higher interest costs.

Inflation induced by heavy deficits does not arise rapidly during a recession, but it jump-starts once recovery gets going. Then it quickly gets out of hand.

All the theory economists use as remedies get stymied by politicians who know the medicine will cause economic belt-tightening. Those remedies will be over-ruled by political considerations.

The present Greek, Portugal and Spain debacles are perfect examples of what happens when belt-tightening is avoided too long. (See the Earl J Weinreb NewsHole® comments.)

The Questionable Wisdom of Crowds

 

The assumption that the masses can be correct may arise from a theory that there is a certain wisdom in crowds. There has been some limited research on this to explain how a form of futures market can explain, for example, how the public could predict future election winners.

Practical results from the use of such theory has been non-existent. No real futures market has ever resulted from past attempts to implement such theories.

The problem: If crowds were prescient, there would be no booms and busts and no economic manias as have existed over past centuries. All securities markets would then be predicable.

On the contrary, evidence over the years suggests the opposite; crowds are invariably wrong. (See the Earl J Weinreb NewsHole® comments.)

No Justice for Alleged “Criminals”?

I have maintained for some time that business folk have a terrible time getting justice when both juries and judges have little understanding of business, just the anti-business sentiment they get from political cant.

A further indication of this problem: A study by professors Lucian Dervan and Vanessa Edkins at the Florida Institute of Technology, and reported in the Wall Street Journal, indicates another issue bearing on such injustice.

Oftentimes, the innocent plead guilty before trial because they feel the odds are stacked against them. And in pleading guilty they avoid a stiffer sentence from an erring judge and jury. (See the Earl J. Weinreb NewsHole® comments.)