Opinion

Unemployment rates still worrisome

Very soon, our seniors will be graduating and thrust into the workforce where they will meet an unemployment rate of 14.2 percent, according to bls.gov. In fact, according to theatlantic.com, 53 percent of recent college graduates are jobless or unemployed.

President Obama said that if he can’t restore job growth to the pre-Bush era, where unemployment was below 5 percent, it would be a “one-term proposition.” But can we really blame Obama? If Bush put the country into economic strife over the coarse of eight years, how can President Obama get it back up and running in three years or less?

Let us look at the facts. President Ronald Reagan inherited an unemployment rate of 10.8 percent. When he sought reelection, unemployment went down to 7.3 percent. One of the main things the Reagan administration did that President Obama refuses to do is embrace our surplus in natural resources or encourage free enterprise and competition.

For example, why is the unemployment rate for mechanical engineers at 3.8 percent, according to CBS News? Because the oil market is controlled and regulated by the Organization of the Petroleum Exporting Countries, and there is no incentive to create an alternative form of energy that is cost efficient. Therefore, companies are not hiring engineers the way they did in the Reagan, Bush, Clinton, and W.Bush era.

The Minerals Management Services states that there is an estimated 18 billion barrels of oil just off of the Gulf Coast, not taking into account other places in America. We need engineers to devise ways to tap into new sources of oil deep underground and offshore to be forever independent of other countries who are in OPEC.

President Obama invested money into Solyndra, and that went bust. He is right that the future is in alternative fuel, but we need to do one more thing before we can start hiring engineers and make that unemployment rate drop: Increase competition. Do not tax the rich more. Let them hire more employees, as well as increase employee benefits.

According to Forbes, it is actually easier and cheaper to set up a foreign corporation, produce product in a foreign country, and ship the product to the United States than it is to produce products in the United States. This is because of the regulation and fees that the government imposes.

The only way to solve this problem is to create an incentive to make it popular, not only for American businesses to make products made in America, but also export American products to other countries. It is a simple formula: Competition+Incentives+Company Growth= entry level jobs for college students and overall job growth.

Many older professors who read this might be familiar with this formula. It is called “Reagonomics,” where you reduce the growth of spending, reduce income tax and capital gains tax, reduce government regulation of economy, and control money supply to reduce inflation.

The formula for creating job growth is simple and has been successfully implemented before.

The author’s name has been redacted by request. 

September 5, 2012

Reporters

The Miami Hurricane


Around the Web
  • Miami Herald
  • UM News
  • HurricaneSports

Darrell Langham, the redshirt junior receiver who caused an uproar among Miami Hurricanes fans the p ...

This news release just in from the University of Miami, another impressive class about to be inducte ...

The University of Miami men’s basketball team got a welcome dose of good news on Monday night. Verno ...

After a disheartening week of practice injury-wise following the University of Miami’s victory at Fl ...

University of Miami’s highly-touted freshman Lonnie Walker, who had surgery for a torn right meniscu ...

From a game simulating how whales navigate to a tribute to Ella Fitzgerald, the U showcased some of ...

A new mobile game called Blues and Reds, now available worldwide, aims to help researchers study int ...

A major Lancet Commission report, a three-year project headed by UM’s Professor Felicia Knaul and co ...

With a $6.8 million NIH grant, the UM School of Nursing and Health Studies and FIU Robert Stempel Co ...

A summer 2017 excursion unlike any other united a group of University of Miami students and faculty ...

Darrell Langham has been a hero twice this season, but his path to prominence has been a long one. ...

The University of Miami Sports Hall of Fame has announced the Class of 2018 inductees for the 50th A ...

Senior diver Wally Layland was recognized for her standout performance at the SMU Classic with ACC C ...

University of Miami freshman Lonnie Walker IV was among 20 players named to the watch list for the 2 ...

The Miami Hurricanes will begin preparation for the 2018 season when fall practice commences Wed., O ...

TMH Twitter Feed
About TMH

The Miami Hurricane is the student newspaper of the University of Miami in Coral Gables, Fla. The newspaper is edited and produced by undergraduate students at UM and is published weekly in print on Tuesdays during the regular academic year.